Action Plan for a Greener and Cleaner Economy

On 8 March the European Commission published its action plan on sustainable finance. This is a key step towards implementing the Paris Agreement on climate change and the EU’s agenda for sustainable development. It is part of the efforts of the Capital Markets Union to connect finance with the specific needs of the European economy. According to First Vice-President Frans Timmermans “Moving to a greener and more sustainable economy is good for job creation, good for people and good for the planet. Today we are making sure that the financial system works towards this goal. Our proposals will allow investors and individual citizens to make a positive choice so that their money is used more responsibly and supports sustainability”.
The action plan sets out a roadmap for further work and upcoming actions covering all relevant actors in the financial system which include:
- Establishing a common language for sustainable finance (a unified EU classification system).
- Creating EU labels for green financial products on the basis of this EU classification system.
- Clarifying the duty of asset managers and institutional investors to take sustainability into account in the investment process.
- Requiring insurance and investment firms to advise clients on the basis of their preferences on sustainability.
- Incorporating sustainability in prudential requirements.
- Enhancing transparency in corporate reporting.
The European Commission is organising a high-level conference on 22 March 2018 to discuss the plan. Further information about the action plan is available at .