scholarly journals Green Bonds: Between economic incentives and eco-change

2020 ◽  
Vol 14 (1) ◽  
pp. 236-245
Author(s):  
Răzvan Hoinaru ◽  
Cedine Benson ◽  
Georgiana Oana Stănilă ◽  
Florin Dobre ◽  
Daniel Buda
Keyword(s):  
Climate Change ◽  
Action Plan ◽  
Economic Incentives ◽  
Bond Market ◽  
Market Development ◽  
Private Capital ◽  
Financial Products ◽  
Sustainable Finance ◽  
Climate Crisis ◽  
The Eu

AbstractAs the investor base committed to financing sustainable companies in an attempt to combat the climate crisis expands, green financial products have become more attractive to issuers, corporate and sovereign alike. As a result, the EU is attempting to create favourable market conditions which mobilise the allocation of private capital for investments that reduce the contribution to climate change. As part of the EU Commission’s Action Plan for Sustainable Finance, it intends to create Green Bond Standards which aim to support the transition to greener securities investments. As a foundation, we provide an overview of the green bond market development. We then consider investment challenges such as incentivisation and transparency and discuss whether the Green Bond Standards shall likely resolve these issues. Furthermore, we confer that enforceability of current green securities regulations is weak to non-existent and propose possible policy approaches which address these issues.

Sustainable Finance in Europe

2022 ◽  
pp. 114-130
Author(s):  
Sonia Marcos ◽  
Maria-Jesús Castrillo
Keyword(s):  
Economic Activity ◽  
Future Application ◽  
The European Union ◽  
Information Costs ◽  
Investor Confidence ◽  
Environmentally Sustainable ◽  
Financial Products ◽  
Sustainable Finance ◽  
Voluntary Basis ◽  
The Eu

The European Union has a clear strategy on how sustainable development should be financed. However, there is still no regulation that defines which activities can be considered sustainable and which cannot. Private initiative has taken the lead in recent years with the publication of different taxonomies and principles applicable on a voluntary basis to green financial products and social projects. The EU taxonomy, issued in 2020, establishes criteria to determine whether an economic activity is environmentally sustainable, and the green bond standard is in the consultation period in 2021. The EU taxonomy will increase investor confidence in green financial products, prevent greenwashing, and reduce information costs. This chapter reviews the evolution and future application of the EU taxonomy, the EU green bond standard, and the need to adopt a taxonomy for socially sustainable activities.

scholarly journals After ‘HLEG’: EU Banks, Climate Change Abatement and the Precautionary Principle

2018 ◽  
Vol 20 ◽  
pp. 61-87 ◽  
Author(s):  
Jay CULLEN
Keyword(s):  
Climate Change ◽  
Carbon Footprint ◽  
Capital Requirements ◽  
External Financing ◽  
High Level Group ◽  
Sustainable Finance ◽  
Structural Uncertainties ◽  
High Level ◽  
Level Group ◽  
The Eu

AbstractThe EU is making progress in reducing its carbon footprint. The creation of a High-Level Group on Sustainable Finance has supplemented recent market-led initiatives and provided some recommendations for future reform. This article argues that more remains to be achieved. In particular, in light of the fundamental structural uncertainties attached to climate change, precautionary approaches to the funding of GHG-intensive industries are worth contemplating. Such measures include raising the capital requirements on assets with ‘brown’ credentials. The high dependence on banks for external financing in the EU makes these reforms particularly appropriate for implementation within the bloc.

scholarly journals Sustainable finance: the European Union’s approach to increasing sustainable investments and growth – opportunities and challenges

2019 ◽  
Vol 88 (2) ◽  
pp. 11-27 ◽  
Author(s):  
Duco Claringbould ◽  
Martin Koch ◽  
Philip Owen
Keyword(s):  
Action Plan ◽  
Theoretical Perspective ◽  
Sustainable Growth ◽  
Policy Goals ◽  
Green Finance ◽  
Political Implications ◽  
Sustainable Finance ◽  
Definition Of ◽  
Sustainable Investments ◽  
The Eu

Summary: The article provides an overview of the most important current EU initiatives contributing to sustainable finance. After an introduction on how the concept of sustainability entered the domain of European policy, the definition of sustainable finance from the EU perspective is discussed, as well as its relationship to the concept of green finance. After outlining the need for sustainable finance to achieve EU and international policy goals, the article provides a discussion of sustainable finance from a theoretical perspective, taking into account already existing perspectives from literature. A brief overview is given of what the EU could theoretically do to foster sustainable finance. The article then proceeds with an overview of the most important existing EU initiatives to foster sustainable finance: the Action Plan on financing sustainable growth adopted in March 2018, the EU Emissions Trading System and EU financial support contributing to sustainable finance. Finally, the article provides a discussion of the challenges and political implications of current sustainable finance policies for the EU, followed by conclusions.

scholarly journals Kebijakan Hukum Lingkungan Terhadap Penanggulangan Krisis Iklim Di Indonesia

2020 ◽  
Vol 2 (2) ◽  
pp. 91-100
Author(s):  
Wahyudin Wahyudin ◽  
Said Sampara ◽  
Hamza Baharuddin
Keyword(s):  
Climate Change ◽  
Government Regulation ◽  
Environmental Law ◽  
Action Plan ◽  
International Forum ◽  
Natural Energy ◽  
The Government ◽  
Climate Crisis ◽  
Forestry Mitigation ◽  
Adaptation And Mitigation

Kebijakan Hukum Lingkungan Terhadap Penanggulangan Krisis Iklim di Indonesia sampai saat ini telah dilakukan oleh Pemerintah Indonesia secara bertahap. Hal ini dibuktikan dengan keikutsertaan Pemerintah didalam Konvensi Perubahan Iklim, protocol Kyoto , Paris Agremeent , dan Bali Roadmap. berkomitmen bersama Negara-negara anggota PBB menandatangani Komitmen didalam forum Internasional untuk ikut menanggulangi pemanasan global. Komitmen tersebut dituangkan dalam Undang-Undang, Peraturan Pemerintah dan pengejawantahan komitmen tersebut di tuangkan dalam Peraturan Presiden Nomor 61 Tahun 2011 tentang Rencana Aksi Nasional Penurunan Emisi Gas Rumah Kaca. 2) Upaya Pengendalian Krisis Iklim di Indonesia dilakukan melalui adaptasi dan mitigasi, Upaya adaptasi, difokuskan pada area yang rentan terhadap perubahan iklim, yakni: sumber daya air, pertanian, perikanan, pesisir dan laut, infrastruktur dan pemukiman, kesehatan, dan kehutanan. Upaya mitigasi dengan cara menghemat penggunaan listrik dan air, Melakukan 5R (Rethink, Reduce, Reuce, Recycle, Replace), Memanfaatkan energi alam semaksimal mungkin, Menggunakan peralatan ramah lingkungan, Melakukan kegiatan penghijauan, Efektivitas penggunaan kendaraan, Mengajak orang-orang sekitar Anda untuk melakukan hal yang sama. The Environmental Law Policy on Overcoming the Climate Crisis in Indonesia to date has been carried out by the Government of Indonesia in stages. This is evidenced by the Government's participation in the Climate Change Convention, the Kyoto protocol, the Paris Agremeent, and the Bali Roadmap. commit with the United Nations member states to sign a commitment in an international forum to help combat global warming. The commitment is outlined in the Law, Government Regulation and the manifestation of that commitment is contained in Presidential Regulation No. 61 of 2011 concerning the National Action Plan for Reducing Greenhouse Gas Emissions. 2) Efforts to Control the Climate Crisis in Indonesia are carried out through adaptation and mitigation. Adaptation efforts are focused on areas that are vulnerable to climate change, namely: water resources, agriculture, fisheries, coastal and marine, infrastructure and settlement, health and forestry. Mitigation efforts by saving electricity and water use, Performing 5R (Rethink, Reduce, Reuce, Recycle, Replace), Utilizing natural energy as much as possible, Using environmentally friendly equipment, Conducting greening activities, Effectiveness of vehicle use, Inviting people around you to do the same thing.

scholarly journals Integration of environmental, social and governance principles in pension funds and insurance companies activities

VUZF Review ◽  
2020 ◽  
Vol 5 (3) ◽  
pp. 31-39
Author(s):  
Stanislav Dimitrov
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Action Plan ◽  
Pension Funds ◽  
Insurance Companies ◽  
The European Union ◽  
Good Corporate Governance ◽  
Potential Problems ◽  
Sustainable Finance

Sustainable finance has been one of the modern topics in recent years. The main reason is the growing need for active steps and measures to preserve nature and avoid the risks of climate change and its consequences. A basic concept in sustainable finance is the adoption and follow-up of ESG principles. The latter refers to environmental “E”, social “S” principles and good corporate governance “G” policies. Financial institutions are considered as the conductor of policies in the field of ESG principles. The European Union is following an action plan to implement these principles and policies in the financial sphere. This report examines the integration of ESG principles into the activities of insurance companies and capital pension funds. Potential problems are identified and possible solutions are presented.

scholarly journals Will the EU Commission Successfully Integrate Sustainability Risks and Factors in the Investor Protection Regime? A Research Agenda

2019 ◽  
Vol 11 (22) ◽  
pp. 6292 ◽  
Author(s):  
Siri ◽  
Zhu
Keyword(s):  
Financial Services ◽  
Product Information ◽  
Conflicts Of Interest ◽  
Action Plan ◽  
Investor Protection ◽  
Financial Education ◽  
Sustainable Growth ◽  
Data Availability ◽  
Sustainable Finance ◽  
The Eu

Building a common EU framework for sustainable finance undoubtedly implies the integration of sound and sustainable processes and skills across the whole structure and governance of financial institutions. Consequently, a new financial paradigm is going to be needed, which will require the strengthening of investor care and protection, so contributing to the restoration of trust in the financial sector. In particular, on 18 December 2018, the European Securities and Markets Authority (ESMA) launched two public consultations on draft technical advice for the integration of sustainability risks and factors into the Directive on Markets in Financial Instruments (MiFID), the Alternative Investment Fund Managers Directive (AIFMD), and the Undertakings for Collective Investment in Transferable Securities Directive (UCITS) regimes, with the aim to clarify the so-called fiduciary duties and to increase transparency in the financial services industry. However, the success of the EU initiatives on investor protection regulation may be seriously endangered by the existence of many challenges, weaknesses, and contradictions raised by economists and stakeholders in relation to the definition of sustainability, ESG data availability and reliability, the development of an EU taxonomy, conflicts of interest, product governance, and suitability assessment. This paper starts by briefly analyzing the recent developments of the regulation of sustainable finance at the global level, then offers a more detailed view on the establishment of a common regime on sustainable finance in the EU, with particular reference to the action plan ‘Financing Sustainable Growth’. Then, it examines the recent proposals for regulation on sustainable finance, specifically considering the barriers to the integration of sustainability risks and factors in the EU investor protection regulation—with particular reference to investment services—with respect to its four main dimensions: (1) disclosure of product information, (2) conduct of business (COB) rules, (3) product governance and intervention, and (4) financial education. The paper concludes that the EU reforming proposals, though admirable, risk oversimplifying a complex issue that cannot be easily solved without considering its practical implications on each category of financial operators in the performance of different financial services.

EU green finance objectives are likely to fall short

2020 ◽  
Keyword(s):  
Slow Growth ◽  
Bond Market ◽  
Regulatory Oversight ◽  
Content Type ◽  
Full Support ◽  
Green Finance ◽  
Sustainable Finance ◽  
Green Investment ◽  
The Eu

Significance An EU-wide framework that will help investors to differentiate between what the EU views as sustainable and unsustainable activities, it is an important pillar for the Commission’s sustainable finance agenda. This seeks to steer financial-sector investment towards firms that practise sustainable activities and incorporate environmental, social and governance (ESG) criteria into their long-term strategies. Impacts Without the full support of member states and the ECB, there is a risk than much of the EU’s agenda will remain aspirational. Addressing climate change will see greater regulatory oversight in green investment, but this could slow growth in the sector. The EU’s issuance of green bonds worth over EUR200bn would provide a significant boost to the global green bond market.

scholarly journals Achieving the European Green “Deal” of Sustainable Grass Forage Production and Landscaping Using Fungal Endophytes

Agriculture ◽  
2021 ◽  
Vol 11 (5) ◽  
pp. 390
Author(s):  
Dariusz Pańka ◽  
Małgorzata Jeske ◽  
Aleksander Łukanowski ◽  
Piotr Prus ◽  
Katarzyna Szwarc ◽  
...  
Keyword(s):  
Climate Change ◽  
Action Plan ◽  
Arable Land ◽  
Fungal Endophytes ◽  
Biodiversity Loss ◽  
Growth Strategy ◽  
Pollution Level ◽  
Mineral Fertilizers ◽  
Forage Production ◽  
The Eu

The European Green Deal is the EU’s latest growth strategy and action plan, which will meet the challenges concerning climate change and environmental degradation. The components of the Green Deal which are intended to prevent biodiversity loss, to reduce pollution level, and to improve food quality are: The Farm to Fork Strategy and Biodiversity Strategy. Their main aims include: Reducing the application of pesticides by 50% by 2030, reducing nutrients loss by 50% while preserving soil fertility, reducing the application of mineral fertilizers by a minimum of 20% by 2030, as well as supporting the development of organic farming to reach 25% of all the arable land in the EU. These aims are very ambitious and they pose a serious challenge. Can the European Green Deal provide an opportunity for fungal grass endophytes? This paper presented different aspects in which endophytes of the Epichloë genus affect colonized plants, as well as their possible applications in biological grass protection and in improving the performance properties of different grass biotopes. Literature was reviewed to provide evidence of how fungal endophytes might be used to achieve the goals of the European Green Deal strategy, in accordance with the principles of sustainable agriculture.

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