Sustainability: EU states agree on criteria for green investments

The EU states want to set uniform criteria for the sustainability of investments. This is the first time governments have agreed.

This was to prevent future financial products from being labeled as "green" that did not meet basic environmental standards, according to the meeting of EU ambassadors in Brussels. The states and the European Parliament must now agree on a common position before the new rules can enter into force.

Last year, the EU Commission made a number of proposals for more sustainable financial markets, some of which have already been adopted by the states and parliament. For example, companies and banks that manage investments for their clients must provide them with detailed information on the climate impact of their investments.

Criticism from the parliament

The European Union has set itself the goal of reducing its greenhouse gas emissions by 40% by 2030 compared to 1990 levels. She wants to implement commitments from the 2015 Paris Climate Agreement. According to estimates by the European Commission, about 180 billion euros would have to be invested in a climate-friendly way each year. Public investment would not be enough, so green private investment should also be strengthened.

Sustainability criteria now agreed include mitigating climate change, protecting water and ocean resources, and protecting and restoring biodiversity. The EU Commission will also develop technical measurement parameters.

The European Parliament was criticized before the negotiations started. The text submitted by the states contained a wording that could potentially contain nuclear power under sustainable activities, said the Greens financial expert Sven Giegold. "This means, for example, that an investor buys a declared sustainable financial product and the underlying fund invests in sustainable investments, but possibly also in nuclear energy."