Report: Scaling-up investments for sustainable growth

Eurosif’s regulatory roadmap for EU policymakers

 

The current economic and geopolitical context is that of intensifying global challenges, including a resurgence of national protectionism, polarisation, conflicts and exacerbating climate crises. A just transition towards a sustainable and resilient economy is key to addressing these challenges, as well as to maintaining financial stability, reinvigorating economic growth and competitiveness, and to guaranteeing the strategic autonomy of the European Union (EU).

To meet the EU’s strategic objectives and decarbonisation targets, public investments alone will not be enough. A significant amount of money needs to be raised from the private financial sector. As the leading association representing sustainable investors across Europe, Eurosif  – recognises the critical role that the financial sector must play in scaling-up investments to accelerate a just transition to a sustainable economy.

To play their role in this transition, investors and other financial institutions need an EU sustainable finance regulatory framework which is complete, coherent, sufficiently ambitious, usable and well-implemented. This document presents a roadmap for EU policymakers to achieve this.

The current EU sustainable finance rules have been developed quickly and often in parallel,creating some flaws and misalignment issues, as well as implementation challenges. Despite its imperfections, the EU sustainable finance regulatory framework has significantly increased transparency on sustainability-related considerations in financial markets and contributed to the growth and integrity of meaningful sustainable investment flows.

Eurosif calls on EU policymakers to build upon this framework, to complete it and to ensure it is well-implemented. It is now time to adjust some of these rules so that they fit and work well together and to address remaining gaps so that the EU sustainable finance framework can effectively support investors and other financial institutions in mobilising finance for sustainable growth.

Access the roadmap here.