New green finance rules will make Green Deal a success

The EPP Group fully backs the new rules defining what qualifies as sustainable investments in the EU and expects them to be decisive in making the Green Deal a success.

"To finance the transition to climate neutrality we cannot rely on public money only. We need the support of financial markets, which invest in sustainable growth. That is why new rules on sustainable finance, protecting investors from risks of greenwashing, are so important," said Peter Liese, EPP Group speaker in the Parliament's Environment Committee.

The so-called 'Taxonomy Regulation' has been approved today by two of Parliament's Committees – the Economic and Monetary Affairs Committee as well as the Environment Committee. It provides for the first time in history rules on how to classify green investment. "If there is no agreement on what is green, it is hard for investors to know whether they are getting what they want when they look for an environmentally sustainable investment. When investment funds claim they contribute to environmental goals, they have to say how and why. Now, with the new rules, we make it easier for companies and individuals to invest in the European Green Deal," said Sirpa Pietikäinen MEP, one of the two European Parliament lead negotiators. This followed today's vote on the agreement reached between the European Parliament and Member States last December.

"Climate change and environmental degradation, including biodiversity loss, requires swift action. Public financing alone will not suffice. Fortunately, we have the necessary technology and financial resources globally," stated Pietikäinen.

For the EPP Group, it is important to stress that "while others only propose raising taxes in order to 'turn green,' it was EPP Commission Vice-President for Financial Services Valdis Dombrovskis who initiated the sustainable finance agenda. New rules on how to classify green investments will make the European Union a trendsetter. With sufficient investment and adequate tools, Europe can make breakthrough innovations. Then without a doubt others will follow," concluded Pietikäinen.