The European Commission has put forward a new package of measures to build on and strengthen the foundations of the EU sustainable finance framework.
The transition to a climate-neutral and sustainable economy by 2050 offers new opportunities for companies and citizens across the EU. Many companies and investors have already embarked on their sustainability journey, as the growing size of sustainable investment testifies. However, companies and investors are also facing challenges in this transition, especially when it comes to complying with new disclosure and reporting requirements.
The aim of package therefore is to ensure that the EU sustainable finance framework continues to support companies and the financial sector, while encouraging the private funding of transition projects and technologies. Specifically, the Commission is today adding additional activities to the EU Taxonomy and proposing new rules for Environmental, Social and Governance (ESG) rating providers, which will increase transparency on the market for sustainable investments. The package aims to ensure that the sustainable finance framework works for companies that want to invest in their transition to sustainability. It aims also to make the sustainable finance framework easier to use, thereby continuing to contribute effectively to the European Green Deal objectives.
Mairead McGuinness, European Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: "We have the foundations of the sustainable finance framework in place. Now is time to build on them. Today we are taking steps to further develop the EU Taxonomy. And we are bringing more transparency and integrity to the market by introducing rules on the operations of ESG rating agencies. Enhancing the usability and coherence of the sustainable finance framework will be our key priority. We also need to reap the full potential of transition finance to ensure that all companies irrespective of their starting points can have adequate tools and support for their transition efforts towards sustainability.”
Press conference by Executive Vice-President Valdis Dombrovskis and Commissioner Mairead McGuinness on the sustainable finance package
Remarks at the press conference
- sustainable finance
- Publication date
- 13 June 2023
- Representation in Ireland