Photo: EP. European Parliament adopts criteria for sustainable investments
The European Parliament has adopted new criteria for sustainable investments on June 18. The newly adopted standards will help the EU achieve climate-neutral goals.
The newly adopted legislation on sustainable investments sets forth six environmental objectives. An economic activity is to be labeled as environmentally sustainable under the condition that it contributes to at least one of the objectives without harming any other. The objectives are: Climate change mitigation and adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, including waste prevention and increasing the uptake of secondary raw materials, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.
As set out in the European Green Deal, the establishment of clear European “green criteria” for investors will be crucial to raising more public and private funding so that the EU can become carbon neutral by 2050. Activities incompatible with climate neutrality but considered necessary in the transition to a climate-neutral economy are to be labeled as transition or enabling activities. The European Commission will regularly update the technical screening criteria for transition and enabling activities.
EP. (2020, June 18). Green finance: Parliament adopts criteria for sustainable investments: News: European Parliament. Retrieved from. https://www.europarl.europa.eu/news/en/press-room/20200615IPR81229/green-finance-parliament-adopts-criteria-for-sustainable-investments.
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