The European Commission is cautious about loosening EU fiscal rules in order to incentivise ‘green’ investment by member states. Valdis Dombrovskis, the Commission Vice-President for the economy, said on Tuesday (17 December) he wants to avoid “divisive” issues.
The European Union continues to lag behind in terms of ‘green’ investment compared with China and the US, the EIB warned on Tuesday (26 November). The lender said that financing should increase by one-third to achieve a net-zero emissions economy by 2050.
EU legislators have proposed extending the European Supervisory Authorities’ (ESAs) powers to include checking the financial institutions’ investment portfolio alignment with the Paris Agreement on climate change.
Following the action plan on sustainable finance to be published early next month, the European Commission will present legislation in May to define what represents 'green' investment, EURACTIV has learned.
The Commission is working on its climate reporting project to be announced next spring, but Commission vice-president Valdis Dombrovskis already announced support for a relaxation of prudential regulations for green projects. EURACTIV France reports.