The EU Sustainable Finance Package aims to channel more capital into sustainable financial products and business activities. According to the EU Commission, the measures contained in the package should enable investors to shift their investments to more sustainable technologies and companies.
This will create new incentives for climate-friendly decision-making, which would contribute to the EU achieving its goal of becoming climate neutral by 2050.
In particular, the EU wants information on sustainability in finance to become more reliable and comparable in order to avoid greenwashing.
The first component of the package is a delegated act that complements the EU Climate Taxonomy Regulation: it sets out technical criteria for businesses to meet so their financial products can receive the EU label ‘green investment’.
“In the context of sustainable financing, the delegated act supplementing the EU Climate Tax Regulation is expected…