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 Legal Framework for Green Finance in the EU and Russia

2021 ◽  
Vol 13 (5) ◽  
pp. 29-43
Author(s):  
Larisa V. Sannikova ◽  
Keyword(s):  
Global Climate ◽  
Legal Framework ◽  
Legal Regulation ◽  
National Standards ◽  
The European Union ◽  
Investor Confidence ◽  
Green Finance ◽  
Sustainable Finance ◽  
Verification Process ◽  
The Eu

The climate agenda has recently taken on new significance with global climate change threatening all of humanity. The regulation of green finance instruments needs to be improved in order to attract more money to fight global warming. To ensure investor confidence in green instruments, a common standard for them must be created. The European Union and Russia have been forming a regulatory framework aiming to create national standards for green bonds. The present article analyses the European Commission’s proposed package of measures to help improve the flow of money toward financing the transition to a sustainable economy. The author explores the problems of developing legal regulation of sustainable finance in Russia, especially with regard to the creation of a national taxonomy of green projects and national verification of sustainable financial instruments. The comparative legal study of the EU and Russian draft laws on green finance has demonstrated similar approaches to establishing regulatory rules. The article describes the prospects for green finance in the context of digitalization. Based on a study of best practices (Green Assets Wallet, green bonds, etc.), it is concluded that digital solutions for sustainable finance are currently still not well-developed. In the future, however, their use will significantly increase investor trust in green instruments and reduce costs, in particular through digitalization of the verification process.

scholarly journals Will the EU Taxonomy Regulation Foster Sustainable Corporate Governance?

2021 ◽  
Vol 13 (21) ◽  
pp. 12316
Author(s):  
Alessio M. Pacces
Keyword(s):  
Corporate Governance ◽  
Environmental Sustainability ◽  
Institutional Investors ◽  
Law And Economics ◽  
Securities Regulation ◽  
Environmentally Sustainable ◽  
Financial Products ◽  
Principal Agent Problem ◽  
Sustainability Disclosure ◽  
The Eu

EU securities regulation has established a taxonomy of environmentally sustainable activities. This article discusses, from a law and economics standpoint, the potential of this taxonomy to support sustainable corporate governance. Corporate governance can be an efficient way to channel investor preferences towards sustainability because the concentration of institutional shareholding has lowered the transaction costs of shareholder action. However, there is a principal-agent problem between institutional investors and their beneficiaries, which depends on greenwashing and undermines sustainable corporate governance. This article argues that introducing environmental sustainability into EU mandatory disclosure aligns the institutional investors’ incentives with the interest of their beneficiaries and may foster the efficient inclusion of sustainability in corporate governance. The argument is threefold. Firstly, the EU taxonomy may curb greenwashing by standardizing the disclosure of environmental sustainability. Secondly, this information may become salient for the beneficiaries as the same standards define the sustainability preferences to be considered in recommending and marketing financial products. Thirdly, sustainability disclosure prompts institutional investors to compete for sustainability-minded beneficiaries. Being unable to avoid unsustainable companies altogether, institutional investors are expected to cater to beneficiaries’ preferences for environmental sustainability using voice instead of an exit.

scholarly journals Hiszpańskie i niemieckie osiągnięcia w rozwoju energetyki odnawialnej: aspekt prawny

2004 ◽  
Vol 2 (1) ◽  
pp. 415-430
Author(s):  
Leszek Karski
Keyword(s):  
Renewable Energy ◽  
Renewable Energy Sources ◽  
National Level ◽  
Energy Sources ◽  
The European Union ◽  
Security Of Supply ◽  
Environmentally Sustainable ◽  
European Union Enlargement ◽  
Polish Law ◽  
The Eu

Certainly, the renewable energy sector in Poland should be the beneficiary of the European Union enlargement. It results from both the energy policy and EU law. Poland should adopt national law to the EU requirements in the field of renewable energy sources. Polish legislators may rest on other countries' experiences in this subject. We especially should take into consideration Spanish and German measures. Spanish and German mechanisms of support for renewable energy sources at the national level are very interesting solutions. Those measures are intended to help to attain objectives such as meeting the commitments given on climate change, environmentally sustainable security of supply, and promotion of renewable energy sources. The article is an analysis of Spanish and German support systems in view of the modification of Polish law in the field of renewable energy sources.

scholarly journals Determinants of Inclusive Growth in the Context of the Theory of Sustainable Finance in the European Union Countries

2021 ◽  
Vol 14 (1) ◽  
pp. 100
Author(s):  
Joanna Stawska ◽  
Małgorzata Jabłońska
Keyword(s):  
European Union ◽  
Correlation Method ◽  
Central Banks ◽  
Added Value ◽  
Inclusive Growth ◽  
The European Union ◽  
Sustainable Finance ◽  
Monetary And Fiscal Policy ◽  
The Eu ◽  
Growth Indicator

The aim of the article is to identify a degree of inclusive growth and to examine the influence of determinants of inclusive growth in the European Union (EU-27) countries, with particular emphasis on factors related to the influence of governments and central banks. The study took advantage of the weight correlation method, which was used to build an inclusive growth measure for the EU-27 for the years 2000, 2008, and 2020. For the construction of the inclusive growth rate, 42 factors were selected that affect inclusive growth in the economic, financial, and non-wage area. These determinants are found in the area of the influence of economic authorities, and mainly in the area of authorities responsible for conducting monetary and fiscal policy and general governance. On the basis of the built-up indicator of inclusive growth, it was noticed that among the 27 EU countries in the studied three years, only four countries distinguished themselves with the highest inclusive growth over the last 21 years, these are: Denmark, Luxembourg, Sweden, and Finland. On the other hand, invariably, three countries recorded the lowest inclusive growth, i.e., Bulgaria, Croatia, and Romania. The added value of the structure of the inclusive growth indicator was a possibility to observe which of the three areas: economic, financial, or non-wage, had a significant impact on the position of a given country in the compiled inclusive growth ranking.

Rising Public Debt and the Need for Fiscal Consolidation in Europe

2010 ◽  
Vol 211 ◽  
pp. F27-F37
Keyword(s):  
European Union ◽  
Euro Area ◽  
Public Debt ◽  
Economic Activity ◽  
Negative Impact ◽  
The European Union ◽  
Fiscal Consolidation ◽  
The Third ◽  
Positive Growth ◽  
The Eu

The deepest, longest and most broadly-based recession the European Union has ever experienced appears to have come to an end. The third quarter of 2009 saw GDP in the EU increase by 0.3 per cent and economic activity in the Euro Area rose by 0.4 per cent. The recovery is expected to be broadly based across countries. After deep contractions registered in 2009 in all members of the EU (with the exception of Poland), all but four EU economies are expected to have recorded some growth in the second half of 2009. Greece, Ireland, Spain and Latvia suffered more than other EU economies, due to their intrinsic vulnerabilities, which reinforced the negative impact of the global shock. These economies are expected to record only moderate positive growth in 2011.

scholarly journals The Financialization of Civil Society Activism: Sustainable Finance, Non-Financial Disclosure and the Shrinking Space for Engagement

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Davide Cerrato ◽  
Tomaso Ferrando
Keyword(s):  
Civil Society ◽  
Financial Reporting ◽  
Third Sector ◽  
Financial Disclosure ◽  
The European Union ◽  
Best Interest ◽  
Environmentally Sustainable ◽  
Non Governmental Organizations ◽  
Sustainable Finance ◽  
Environmental Causes

AbstractInspired by the principles of sustainable finance and Environmental, Social and Governance (ESG) reporting, the European Union Directive 95/2014 on non-financial disclosure recognized that metrics and more transparency would foster internal debates, ensuring proper governance and helping to promote dialogue between management, the board and stakeholders, including civil society and non-governmental organizations (NGOs). Although significant academic attention has been paid to the -limited- space that the third sector had in the definition of the content of the Directive, not enough has been said on the way in which the Directive and ESG reporting can be leveraged by non-financial actors and what are the consequences of embracing accounting, non-financial reporting and corporate governance as tools for campaigning. This paper tries to fill the gap and asks some direct questions: are the Directive and the EU approach to sustainable finance opening spaces of engagement and confrontation that contribute to a true transition into a socially and environmentally sustainable future? Is the encounter between the financial realm and civil society a real win-win in the best interest of future generations and the planet? After presenting the background of the Directive and the three main opportunities that the ESG framework presents for civil society engagement, we conclude with a critical reflection on what is lost when civil society sits around the same table as financial institutions, uses their vocabulary and accepts that the conversation can only happen around those social and environmental causes that are financially material.

scholarly journals Smart Organizations as a Source of Competitiveness and Sustainable Development in the Age of Industry 4.0: Integration of Micro and Macro Perspective

Energies ◽  
2021 ◽  
Vol 14 (6) ◽  
pp. 1572
Author(s):  
Anna Adamik ◽  
Dorota Sikora-Fernandez
Keyword(s):  
Sustainable Development ◽  
Industry 4.0 ◽  
The European Union ◽  
The Sustainable Development ◽  
Environmentally Sustainable ◽  
Country Level ◽  
Market Competitiveness ◽  
Single Construct ◽  
Development Objectives ◽  
The Eu

The Industry 4.0 Revolution that is taking place nowadays means that organizations face not only new opportunities, but also challenges related to the identification of their role in creating a modern smart world. The economies of many countries are under the significant and growing influence of various types of organizations, not only strong international business corporations, but also, more and more often, smaller but intelligent ones called smart organizations IR 4.0. Due to their unique characteristics, intelligent organizations are better able than others to cope with technological breakthroughs, social, and cultural problems as well as to compete effectively and develop in an environmentally sustainable way. With their growing potential, they are strengthening the economies of their countries of origin and daily operation. Their growing role is also visible in the processes of shaping competitiveness and achieving the sustainable development objectives of the European Union (EU). The countries that are able to organize an environment on their territory that is conducive to the smart organization’s development are clear examples not only of a high market competitiveness, but also of a dynamically growing commitment to the effective implementation of the challenges associated with the 17 objectives of sustainable development of the contemporary EU, according to the 2030 Agenda for Sustainable Development. This allows for a conclusion that the identification of the key factors for a smart organization’s development makes it possible to monitor and provide targeted support for the development not only of these organizations, but also for the competitiveness and sustainability of individual countries, both from the EU and other regions of the world. In light of the above, the aim of this article is therefore to propose an effective tool to monitor the use of power of smart organizations in the processes of building the competitiveness and sustainable development of countries, with particular reference to the EU. To achieve this objective, we constructed a synthetic power of smart organizations index (PSOI) based on previously collected data from EUROSTAT. This tool allows for the integration of micro (organization level) and macro (country level) economic aspects into a single construct. Based on the analysis of its results, countries wishing to actively engage in the development of their own and the EU’s smartness and sustainability can be offered several more or less intense navigation paths to market success, based on the development of smart organizations.

scholarly journals Differences in the generation of industrial waste from economic activities in Ukraine and the EU and the prospects for the integrated use of mineral raw materials

2021 ◽  
Vol 280 ◽  
pp. 09008
Author(s):  
Victoria Gubina ◽  
Victor Zaborovsky ◽  
Natalia Mitsiuk ◽  
Aboubaker Farag Srat
Keyword(s):  
Economic Activity ◽  
Statistical Data ◽  
Raw Materials ◽  
Household Waste ◽  
The European Union ◽  
Waste Generation ◽  
Economic Activities ◽  
Eu Countries ◽  
The Eu ◽  
Iron And Manganese

The paper presents the comparative analysis of the amount of waste generated in Ukraine and European countries (except for radioactive waste) based on the official EU and Ukrainian statistical data. The data on waste generation are compiled according to the following classification: by economic activity and household, waste category, grades of hazard, and regions. In Ukraine, 352.3 million tons of waste was generated in 2018. By 2018, almost 13 billion tons of waste had been accumulated at the managed dumpsites, including about 12 million tons of hazardous and over 200 million tons of household waste. In the European Union, 2.6 billion tons of waste was generated in 2018. Over 70% of it was generated by 10 countries: Germany, France, England, Poland, Romania, Italy, Sweden, the Netherlands, Spain and Finland. By economic activity, the largest amounts of waste in Ukraine are generated by the mineral extraction and processing industry, the smallest – from water treatment and construction. In the EU countries, these values are somewhat different. For example, in Germany and France, the largest amounts of waste are generated from construction and manufacturing, the smallest – from agriculture, forestry and fishery. By waste category, the waste generated both in the EU countries and in Ukraine is mineral and solid waste. In Ukraine, the largest amounts of waste are produced and accumulated in the Dnipropetrovsk, Donetsk and Zaporizhzhia regions which accommodate large enterprises for extraction and mineral processing of iron and manganese ores, titanium-zirconium placers, coal, dolomite, and metallurgical limestone, as well as metallurgical and ferroalloy plants.

scholarly journals The European model of market integration. Formation and perspective.

2020 ◽  
Author(s):  
Natalia Kondratieva ◽  
Keyword(s):  
Regional Integration ◽  
Economic Activity ◽  
Market Integration ◽  
The European Union ◽  
Asian Countries ◽  
Regional Trade ◽  
European Model ◽  
Trade Regimes ◽  
The Subject ◽  
The Eu

The monograph contains the results of ten years of the author's research devoted to problematic issues of regulating the movement of factors and results of economic activity within the regional integration association, the structure of the Single Internal Market of the European Union, the formation and competition of regional trade regimes. Over the years of studying the subject, the principles of market unity have covered the newest areas of the European economy; the EU has faced a number of internal and external challenges that have led to a deepening of the integration process; EU partners such as Russia and Asian countries have fundamentally changed, which has expanded the objectives of the study.

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.

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