805L. Khudyakova (l.khudyakova@imemo.ru),
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO) 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation
Abstract. In the last years the European Union took a range of actions in line with the global efforts for creation of environmentally-sustainable financial system. This article reviews the Action Plan on Financing Sustainable Growth launched by the European Commission in 2018, its main features, new opportunities and challenges for major actors. As the analysis reveals — to create an EU-wide environmentally-sustainable classification system for financial products (EU taxonomy) it requires serious efforts to develop and conform technical details such as new categories of benchmarks and indicators. Respectively a staged approach is desired. From the other side, development of a unified taxonomy within a group of countries having a high level of integration with the possibility for EU authorities to implement the main targets into legislative initiatives, has more chances for success than at the global level. In the latter case we can expect for the near future only development of compatibility of criteria. Implementation of the Action Plan is partly laid on the EU intergovernmental financial institutions, but mainly it is placed on private ones. European banks, though being a key source of sustainable financing, cannot solely fulfill this task due to new banking regulations and serious internal problems in many of them. So involvement of institutional investors becomes more and more important as they are expected to create new class of financial assets. Approval of the Action Plan is an evidence of EU’s ambition to keep its leading position in implementation of Sustainable development goals within the framework of the UN Agenda 2030. However, there are also many obstacles for growth of sustainable financing in the EU. To overcome them it requires coordinated efforts by all participants: EU-wide authorities, EU member-countries, private financial institutions, other investors and the civil society.
Keywords: European Union, sustainable financial system, green finance, EU Action Plan on Financing Sustainable Growth, Sustainable development goals 2030, Paris Climate Agreement, European banks, institutional investors
REFERENCES
1. Khudyakova L.S. Reforma global’nykh finansov v kontekste ustoichivogo razvitiya [Reform of global finance in the context of sustainable development]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2018, vol. 62, no. 7, pp. 38-47. DOI:10.20542/0131-2227-2018-62-7-38-47
2. The Financial System We Need. Aligning the Financial System with Sustainable Development. The UNEP Inquiry Report. Oct. 2015. 112 p. Available at: http://unepinquiry.org/wp-content/uploads/2015/11/The_Financial_System_We_Need_EN.pdf (accessed 20.02.2019).
3. Association for Financial Markets in Europe. Global and European Green Finance Policy Directory. Dec. 2017. 16 p. Available at: https://www.afme.eu/globalassets/downloads/publications/gfma-global-and-european-green-financepolicy-directory.pdf (accessed 20.03.2019).
4. Sustainable Finance: High-Level Conference Kicks EU’s Strategy for Greener and Cleaner Economy into High Gear. European Commission press release, Brussels, March 22, 2018. 2 p. Available at: http://europa.eu/rapid/press-release_IP-18-2381_en.htm?locale=en (accessed 04.03.2019).
5. Global and European Green Finance Policy Directory. July 2017. 10 p. Available at: https://www.ebf.eu/wp-content/uploads/2017/09/EBF_028305-GGFC-Global-and-European-Green-Finance-Policy-Initiatives-July-2017.pdf (accessed 20.03.2019).
6. Financing a European Economy. Final Report 2018 by the High-Level Expert Group on Sustainable Finance. Available at: https://ec.europa.eu/info/sites/info/files/180131-sustainable-finance-final-report_en.pdf (aññåssed 04.03.2019).
7. Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions. Action Plan: Financing Sustainable Growth Brussels, 8.3.2018. COM (2018) 97 final. 2. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018DC0097&from=EN (accessed 20.04.2019).
8. Khudyakova L.S. Mezhdunarodnoe sotrudnichestvo v razvitii “zelenogo” finansirovaniya. [International cooperation in the development of “green” financing]. Money and Credit, 2017, no. 7, pp. 10-18.
9. G20 Green Finance Study Group. G20 Green Finance Synthesis Report. July 15, 2016. 35 p. Available at: http://www.g20.utoronto.ca/2016/green-finance-synthesis.pdf (accessed 20.03.2019).
10. Kahlenborn W., Cochu A. et al. Defining “Green” in the Context of Green Finance. Final Report. European Commission, Brussels, Oct. 2017. Available at: http://ec.europa.eu/environment/enveco/sustainable_finance/pdf/studies/Defining%20Green%20in%20green%20finance%20-%20final%20report%20published%20on%20eu%20website.pdf (accessed 20.03.2019).
11. The Need for a Common Language in Green Finance. Towards a Standard-Neutral Taxonomy for the Environmental Use of Proceeds. Joint Research by EIB and Green Finance Committee of China Society for Finance and Banking. Nov. 11, 2017. 20 p. Available at: https://www.eib.org/attachments/press/white-paper-green-finance-common-language-eib-and-greenfinance-committee.pdf (accessed 04.03.2019).
12. EU Unveils Green Finance Strategy to Mainstream Sustainable Investing. Construction Climate Challenge. March 9, 2018. Available at: http://constructionclimatechallenge.com/2018/03/09/eu-unveils-green-finance-strategy-mainstreamsustainable-investing/ (accessed 20.03.2019).
13. Towards a Green Finance Framework. EBF Report. 28 Sept. 2017. 43 p. Available at: https://www.ebf.eu/wp-content/uploads/2017/09/Geen-finance-complete.pdf (accessed 20.03.2019).
14. Rust S. EC Sustainable Finance Action Plan ‘Is Important’ for Pension Funds. Intelligence on European Pensions and Institutional Investment. March 9, 2018. Available at: https://www.ipe.com/news/esg/ec-sustainable-finance-action-planis-important-for-pension-funds/www.ipe.com/news/esg/ec-sustainable-finance-action-plan-is-important-for-pensionfunds/10023582.fullarticle (accessed 04.03.2019).
Registered in System SCIENCE INDEX
No comments