VP Dombrovskis speech at Swiss Finance Council: preparing for the Action Plan on Sustainable Finance
European Commission Vice-President Dombrovskis speech at Swiss Finance Council on 13 February 2018
The Commission is ready to follow up on the HLEG report’s recommendations and deploy sustainable finance at a pan-European scale.
Next month, they will present an Action Plan for mobilising green investment and integrating sustainability into all aspects of the financial system.
- Our priority will be to establish a unified EU classification system – or taxonomy – for sustainable assets and activities. This will help us to define what is green and what is not green, and identify areas where sustainable investment can make the biggest impact. This spring, we will present a legislative proposal on the governance of this EU classification system.
- Also this spring, we will present a proposal to clarify the duties that asset managers and institutional investors have to take sustainability into account in the investment process. This would help their clients get more information and options for sustainable investments.
We are also looking at actions that would link into and build on the EU classification system:
- For example, a larger market for green financial products can drive the investment that we need and help us meet our climate goals. That is why we intend to establish EU criteria and labels for green bonds and investment funds, building on the EU classification. By allowing investors to easily identify products that comply with green or low-carbon criteria, this could help those who are looking for more sustainable options.
- Finally, we are looking into boosting green investments and loans by introducing a so-called green supporting factor. This could be done at first by lowering capital requirements for certain climate-friendly investments, such as energy-efficient mortgages or low-carbon cars. However, green does not mean risk-free. Any measures would have to be carefully calibrated and based on a clear EU classification, to avoid the risk of green-washing.
Read the full speech.