The European Union is committed to becoming the first climate-neutral bloc in the world by 2050. This requires significant investment from both the Union and the national public sector, as well as the private sector. Despite this increased commitment, climate change considerations are still far from being integrated into the business of financial institutions. Transitioning to more sustainable finance can be challenging, as it requires new mechanisms, procedures and tools to identify, design and finance eligible projects.
The scale of the investment challenge requires the financial sector to take a key role by:
- reorienting investments towards more sustainable technologies and businesses;
- financing growth in a sustainable manner over the long term;
- contributing to the creation of a low-carbon, climate-resilient and circular economy.