The Commission welcomed the final report by its High-Level Expert Group on Sustainable Finance (HLEG), which sets out strategic recommendations for a financial system that supports sustainable investments.
The EC will now move to finalise its strategy on sustainable finance on the basis of these recommendations. Delivering an EU strategy on sustainable finance is a priority action of the Commission's Capital Markets Union (CMU) Action Plan, as well as one of the key steps towards implementing the historic Paris Agreement and the EU's Agenda for sustainable development. To achieve the EU's 2030 targets agreed in Paris, including a 40% cut in greenhouse gas emissions, we need around €180 billion of additional investments a year.The financial sector has a key role to play in reaching those goals, as large amounts of private capital could be mobilised towards such sustainable investments. The Commission is determined to lead the global work in this area and help sustainability-conscious investors to choose suitable projects and companies.
The final report by the HLEG maps out the challenges and opportunities that the EU faces in developing a sustainable finance policy. It identifies ways in which the financial sector can re-connect with the real economy to support the transition to a more resource-efficient and more circular economy. The group argues that reorienting investment flows into long-term, sustainable projects will also improve the stability of the financial system.
The report proposes:
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a classification system, or 'taxonomy', to provide market clarity on what is 'sustainable'
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clarifying the duties of investors' when it comes to achieving a more sustainable financial system
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improving disclosure by financial institutions and companies on how sustainability is factored into their decision-making
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an EU-wide label for green investment funds
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making sustainability part of the mandates of the European Supervisory Authorities (ESAs)
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a European standard for green bonds.
The group's report will form the basis of the EC's comprehensive Action Plan on sustainable finance that it will put forward in the coming weeks.
Full press release
Full report
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