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On 8 March 2018, the EU Commission proposed a suite of far-reaching near-term reforms aimed at the promotion and regulation of “sustainable finance” in all its forms across the entire investment chain within the European Union (IP-18-1404). This short article explains the key elements of the Commission’s action plan.

Plants growing

The proposals flow in part from recommendations made by the High-Level Expert Group on sustainable finance set up by the Commission in late 2016, which reported in January 2018. They are designed to complement and drive the EU’s efforts to fulfill its commitments under the Paris Climate Change Agreement and the UN 2030 Agenda for Sustainable Development.

The Commission describes its plans, which cover the entire investment chain, as “comprehensive”, “far-reaching reform[s] that could set a global benchmark for sustainable finance” and “covering all relevant actors in the financial system”.