EU ushers in game-changing financial rules
An EU taxonomy to define green investments is expected to enter into force in 2021, but some experts want it to be used immediately to inform stimulus packages aimed at dealing with the social and economic fallout from the Covid-19 pandemic
GREEN RULES
Financial products sold as sustainable in Europe will, from 2021, have to show how they meet environmental objectives, beginning with how they contribute to climate action and the clean energy transition
BENEFITS
More and better data will encourage the flow of capital to companies providing environmental solutions, make it easier for investors to identify green products and reduce greenwashing claims
KEY QUOTE
The taxonomy will significantly accelerate the shift from brown to green as shareholders increasingly call for an end to high carbon infrastructure. For utilities it will no longer be enough to invest half of their capital expenditure in renewables and half in gas, they will need to invest all of it in renewables ...
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