EU states reject green finance law in setback for climate goals | Malay Mail

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BRUSSELS, Dec 11 — European Union states have rejected a set of rules governing which financial products can be called “green” and “sustainable”, an EU official said, in a major setback for the bloc’s climate ambitions. The decision overturned a deal struck just last week by EU...

Finnish Minister for European Affairs Tytti Tuppurainen attends a plenary session on preparations for the next EU leaders' summit, at the European Parliament in Brussels, Belgium October 9, 2019. — Reuters pic

The decision overturned a deal struck just last week by EU lawmakers and the Finnish presidency of the EU, which negotiators hailed as a landmark compromise that could establish a global standard on green bonds and other financial products aimed at climate-conscious investors. Such investments were not explicitly excluded from the EU’s new classifications, known as taxonomy, but under the rules it would be very difficult to label them as green, potentially reducing future funding for those industries.The setback came on the same day the EU commission unveiled plans to make the bloc greener and drastically cut carbon emissions.

Under EU rules, lawmakers and governments have to find a compromise over proposed legislation when their views differ. Talks were conducted on behalf of EU states by Finland, which holds the six-month EU presidency until the end of this year.

 

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