MEPs adopt EU-wide classification system for sustainable financing
The European Parliament has today adopted a proposal intended to provide clarity on what sustainable investments are by creating an EU-wide classification system. This is a first and essential step in efforts to channel investments into sustainable activities.
Currently, there are various notions and definitions across the EU of what ‘sustainability’ and ‘green’ entail.
Private investment is essential to meet the goals of the Paris Agreement and other environmental objectives and the financial sector has a key role to play.
Ms Lieve Wierinck, ALDE shadow MEP for this file on the European Parliament's Economic and Monetary Affairs Committee commented:
“The vote today is historic. In ten years time we will look back at this vote as the moment that the European Parliament defined the basis for a sustainable future. The moment that Europe took the lead in setting the standard for the rest of the world to pursue. Today we can finally offer the financial industry an answer to the question: “What does sustainability entail?” This will enable them to produce sustainable financial products that will soon be available to all EU citizens so that they can help to finance the transition to a sustainable future for our children and grandchildren.”
Gerban - Jan Gerbrandy MEP, shadow for the ENVI Committee of the House commented after the vote today;
""The financial sector is in the position to make or break the transition to a sustainable economy. With this vote, we made a first step, but we must raise the ambition. We need to ensure that all parts of the financial system are sustainable. The European Commission will have to work on further rules to ensure that the financial system truly supports the green transition that our society and the planet so badly need."