12 Jun Green and Sustainable Finance highlighted in EU’s Capital Markets Union initiative
The mid-term review of EU’s Capital Markets Union Initiative was published on June 8th. The report contains a section dedicated to green and sustainable finance, marking another step towards mainstreaming green finance in Europe as reported by EURACTIV’s Frédéric Simon. Once regarded as “exotic”, sustainable finance is now firmly entering the policy mainstream, said Niall Bohan, head of unit at the European Commission in charge of the Capital Markets Union.
Bohan elaborates, “a tipping point has been reached in my part of the Commission as to how we integrate sustainability issues into the fabric of financial regulation,” referring to a Communication published in September last year, which laid the foundation for future EU policy measures on sustainable finance. However, Bohan sought to play down expectations from environmental activists, saying financiers alone can’t save the planet from global warming. “Expecting a financial regulation to somehow solve this deeper problem is going to lead us to disappointment,” he warned. “We’re going to need reliable, meaningful disclosure by issuers. Companies that raise capital are going to need to explain what they use the capital for,” including environmental and other sustainability dimensions, Bohan stressed.
EURACTIVE article available here.
Full report available here.