Inside this Topic Guide
As part of its European Green Deal and 2030 Climate Target Plan, the European Commission is aiming to be climate-neutral by 2050, and has increased its emissions reduction target to 55% by 2030 as compared to 1990 levels. To meet these targets, the EU needs to invest approximately EUR 250 billion more every year during 2021-2030 than it did the previous decade. Likewise in the UK, as part of its Green Finance Strategy the government has legislated for net-zero emissions by 2050, and recognises that this objective will require unprecedented levels of investment in green and low carbon technologies, services and infrastructure. Other governments and nations across the globe are at varying stages of introducing similar commitments.
In each case, the financial sector has been identified as having a key role to play in reaching these goals by re-directing investments towards more sustainable businesses, and aligning private sector financial flows with clean, environmentally sustainable and resilient growth.
To this end, governments and regulators across the globe have been, or are in the process of, developing comprehensive policy agendas on sustainable finance which has resulted in a plethora of new legal and regulatory developments for investment managers and investors.
For an overview of green and sustainable finance, please see our Green and Sustainable Finance Topic Guide, and our publication Growing the Green Economy: Addressing the Sustainability Challenges and Opportunities. Please see also our Thought Leadership page on climate change, green finance and renewables.