ABSTRACT
Major private and public investments are needed to transform the EU economy to deliver on climate, environmental and social sustainability goals, including the Paris Agreement and the UN Sustainable Development Goals (SDGs). Sustainable finance makes sustainability considerations part of financial decision-making (i.e., Management Systems and Decision Frameworks). One of the options the EU has chosen is to create a taxonomy of green investments and transition technologies. This taxonomy can serve as framework for investors. Investors will need to report to what extent their investments are taxonomy compliant. Also the EU considers creating two low carbon benchmarks to guide investors towards low carbon investing.
