Banks Will Have to Chip in to Reach EU Climate Goals

The leaders of the EU are planning to funnel hundreds of billons of euros into sustainable investments each year through banks and markets to create the first “climate-neutral continent” by the middle of the century. The related plans announced in the EU’s sustainable finance framework detail the next steps and measures for finance, enabling companies and households to achieve climate goals.

The proposal builds on a 2018 initiative that set the stage for the bloc’s “taxonomy,” which aims for the reliable classification of investments based on how green, eco and sustainable they are. Based on the proposal, the governments of the EU have until June 2023 to figure out how their financial markets contribute to the reduction of the bloc’s net carbon emissions by 2050. The range of possible options for fundraising will include asset managers, pension funds, banks and insurers.

Source: Reuters