Revamping the EU’s climate leadership with transition finance

(EurActiv, 28 Nov 2022) A robust transition finance framework can reduce businesses’ operational risks and provide reassurance to markets, write Jurei Yada and Pietro Cesaro.

Putin’s invasion of Ukraine has revealed the vulnerabilities of Europe’s fossil-fueled economy. The transition to climate neutrality has now become a matter of security for the European Union and will require the mobilisation of unprecedented investment.

Yet as urgent as the task ahead is, EU businesses and markets remain uncertain about how to finance the transition, and Europe is not providing them with the necessary policy coherence and governance arrangements.

This situation poses a continued risk to Europe’s security, resilience and competitiveness, so the EU must urgently sally out and set up a coherent transition finance framework.  

Transition finance refers to financing for activities and solutions that are necessary to get to climate neutrality, but are not classified as ‘green’ under current frameworks. A robust framework for transition finance is in the interests of the EU, its businesses and its citizens.

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EurActiv, 28 Nov 2022: Revamping the EU’s climate leadership with transition finance