The Renewed Sustainable Finance Strategy (cepInput)
The EU Commission intends to present a new strategy for sustainable financing in the coming months. In spring 2020, it had already held a consultation on the subject. On the basis of the consultation document, the Center for European Policy is examining the ideas that are likely to feed into the new strategy.
The establishment of binding EU-wide definitions for sustainable activities, sustainability labels and standards is misguided. There cannot and should not be just this one view of sustainability. Moreover, anchoring sustainability in the financial markets carries the risk of undermining the existing risk-based approach of financial market regulation and supervision. This endangers financial stability. Furthermore, the Center for European Politicy considers detailed measures on how companies should take sustainability into account to be unnecessary.