EU’s green finance label

The European Parliament has voted on a classification for sustainable assets, excluding nuclear power as a green asset. Less controversially fossil fuels were also removed from the EU’s proposed Green Finance Taxonomy, with the goal of discouraging investments in polluting industries and boosting green investment.

The classification comes with a requirement for investors to disclose the sustainability objectives of investments, and if they have to state whether they are consistent with the EU’s green assets taxonomy. This measure is intended to help stop ‘green-washing’ of investments that might appear sustainable bit that are not.
An attempt to create a “brown list” of name and shame investments was, however, rejected.

The proposals are not without other criticisms, however, and some have pointed to the lack of any social measures being included in the definitions – at least for now.

Also, see EU to publish sustainable finance standards.

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