EC Consults on Renewed Sustainable Finance Strategy
EC is consulting on the Renewed Sustainable Finance Strategy, which is an integral part of the European Green Deal and of the overall efforts to ensure a sustainable and resilient economic recovery, following the COVID-19 outbreak. The consultation is intended to collect views and opinions to feed into the work to help mobilize private investment in sustainable projects. EC aims to adopt the Renewed Sustainable Finance Strategy in the second half of 2020. The consultation will be open until July 15, 2020.
This renewed strategy will build on previous initiatives and reports, such as the 2018 EC Action Plan on Financing Sustainable Growth and the reports of the Technical Expert Group on Sustainable Finance. The renewed sustainable finance strategy will provide a roadmap, with new actions to increase private investment in sustainable projects and activities to support the actions set out in the European Green Deal. The initiative will also provide additional enabling frameworks for the European Green Deal Investment Plan. Within the broader context of the European Green Deal Investment Plan, the Renewed Strategy will focus on three areas:
- Strengthening the foundations for sustainable investment by creating an enabling framework, with appropriate tools and structures. Many financial and non-financial companies still focus excessively on short-term financial performance, instead of the long-term development and sustainability-related challenges and opportunities.
- Increased opportunities to have a positive impact on sustainability for citizens, financial institutions, and corporates. The aim is to maximize the impact of the frameworks and tools to “finance green.”
- Climate and environmental risks will need to be fully managed and integrated into financial institutions and the financial system as a whole, while ensuring social risks are duly taken into account, where relevant. Reducing the exposure to climate and environmental risks will further contribute to greening the finance.
Related Links
Comment Due Date: July 15, 2020
Keywords: Europe, EU, Banking, Insurance, Securities, Sustainable Finance, Climate Change Risk, ESG, European Green Deal, Social Risk, EC
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