Meeting the Paris Agreement will require a major shift in financial investments away from fossil fuels towards mitigation and climate resilience. The combination of an increasing volume and demand in sustainable investments on the one hand, and a lack of harmonised criteria to characterise these investments on the other, led ISO to initiate the development of a series of international standards on environmental finance. Addressed primarily at financial institutions and institutional investors, these standards could make a substantial contribution to the implementation of the Paris Agreement and the UN 2030 Agenda for Sustainable Development.
In March 2020, the sustainable finance technical expert group (TEG) established by the European Commission published its final report, giving recommendations for technical screening criteria for economic activities that can make a substantial contribution to climate change mitigation or adaptation, while avoiding significant harm to the environment.
As part of the Taxonomy Regulation, the EU has reflected on the identification of “environmentally sustainable” economic activities in order to channel public and private investments towards these activities.
In order to exclude the support of fossil fuels from the future Cohesion Policy funding, environmental NGOs led by WWF, CAN Europe and CEE, addressed the European institutions with an open letter.