The European Commission published an action plan in March 2018 based on the recommendations put forward by the High-Level Expert Group (HLEG) on Sustainable Finance. The plan is aimed at reorienting capital flows toward sustainable investments, reducing the impact of climate change as well as social and ecological issues on the financial system, and fostering transparency and long-term financial thinking. The previous Commission (2014-2019) took extensive steps to put the plan into action. The new Commission (as of 2019) has additionally initiated a new growth strategy aimed at making the EU climate-neutral by 2050. Commission President Ursula von der Leyen describes the Green Deal as a growth strategy that will reduce emissions and create jobs. All current and future EU strategies and measures are to support the aims of the Green Deal. Implementing the measures on sustainable finance is seen as an important priority in this regard. As part of the Green Deal, the EU climate legislation will help to set out a clear framework for an effective and fair transition to a low-carbon economy and make it calculable for investors. It will also ensure that all EU strategies contribute to the goal of climate-neutrality and that all sectors play their part.
Implementing the EU action plan and the Green Deal requires a large number of strategies, initiatives, and measures in all sectors.
Each issue of the Asset Management Association’s newsletter highlights a selection of regulatory developments in the area of sustainable finance (e.g. taxonomy, Disclosure Regulation, MiFID/UCITS/AIFMD).