The European Green Deal is an ambitious plan to cut net emissions of greenhouse gases to zero by 2050; to decouple economic growth from the use of resources; and to ensure that “no person and no place is left behind”. It will also soon incorporate social factors, says Marcel Haag, head of horizontal policies at Fisma, the EU’s directorate-general responsible for policy on banking and finance.
As part of its sustainable finance strategy, the EU has created a green taxonomy and relies on the non-financial reporting disclosures directive and on regulation to improve the transparency of benchmark methodologies. It is also working on the creation of green bond standards and considering an update of current policy.