12/06/20

SUSTAINABLE FINANCE: EU to back new green finance law.

As published on renews.biz, Friday 12 June, 2020.

The EU Parliament is expected to approve a new law next week that establishes clear guidance on green investments.

MEPs will vote on Thursday morning following a recommendation from the President David-Maria Sassoli to back the legislation.

The new law will lay down six environmental objectives and allow economic activity to be labelled as environmentally sustainable if it contributes to at least one of them without significantly harming any of the others.

Establishing clear “green” criteria for investors is key to raising more public and private funding for the EU to become carbon neutral by 2050 as set out in the European Green Deal, according to the EU.

The European Commission estimates that Europe needs around €260 billion per year in extra investment over the next decade to achieve the current 2030 climate and energy targets.

MEPs are expected to back the legislation, according to statement from the bloc. If no member objects, the law will be approved.