BRUSSELS - The European Commission sought to boost the flow of private money to tackle climate change on Tuesday by publishing guidelines on what qualifies as environmentally friendly investment, in a move welcomed by the financial industry.
To cut emissions by 2030, many sectors of the economy, such as manufacturing, agriculture and energy, require an extra annual investment of between 180 and 290 billion euros and even more is needed to achieve zero emissions by 2050. “It will benefit investors, companies and the public sector, and is a major step forward in defining green financial products,” BNP Paribas fund manager Helena Vines Fiestas said.
These objectives are climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, waste prevention and recycling, pollution prevention and control and protection of healthy ecosystems.