08 Mar Is the EU about to launch a ‘green’ assets classification system?
Earlier this year, the European Commission’s High Level Expert Group on Sustainable Finance published its final recommendations, including a call for Europe to create a robust classification system for ‘green’ or ‘sustainable’ investments.
Now it’s reported that EU finance ministers have accepted the need for a classification system, according to its vice president in charge of financial stability. Campaigners argue that a clearer classification of assets would improve transparency, consistency and comparability in ESG reporting, and could enable authorities to incentivise ‘green’ assets and penalise ‘brown’ assets through capital weightings, subsidies or levies.
The Commission is due to publish its final strategy on sustainable finance this month.