Connect with us

EU

#SustainableFinance - Commission welcomes agreement on a new generation of low-carbon benchmarks

SHARE:

Published

7 years ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

The Commission welcomes the agreement reached by the European Parliament and member states on a new generation of low-carbon benchmarks needed to help boost investment in sustainable projects and assets.

The European Parliament and Council still have to formally approve the rules. This agreement creates two new categories of low-carbon benchmarks: a climate-transition benchmark and a specialized benchmark which brings investment portfolios in line with the Paris Agreement goal to limit the global temperature increase to 1.5˚above pre-industrial levels.

First proposed by the Commission in May 2018, the rules agreed support the goals of the Capital Market Union (CMU) to connect finance with needs of the economy and the EU's agenda for sustainable development. Euro and Social Dialogue, Financial Stability, Financial Services and Capital Markets Union Vice President Valdis Dombrovskis said: "With this agreement, investors will benefit from two reliable benchmarks to pursue their ambitious climate strategies. This is a milestone of the Commission action plan on financing sustainable growth, participating in reorienting capital flows towards sustainable investment."

Jobs, Growth, Investment and Competitiveness Vice President Jyrki Katainen said: "I welcome the agreement which demonstrates that our Sustainable Finance agenda and goals to build a stronger Capital Market Union can work hand in hand. The EU is sticking to its ambitions to make Europe a more attractive place for investors by setting high disclosure standards and paving the way for long-term sustainable investment policies."

Benchmarks have an important impact on investment flows. Many investors rely on them for the creation of investment products, for the measurement of performance of investment products and for asset allocation strategies. A press release is online.

Share this article:

Share this:
Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending