The writer is a political economist at the University of Duisburg-Essen
The holy grail of sustainable finance is figuring out how to distinguish sustainable from unsustainable investments. Get this right, and the public and private sectors have a guide to their decision-making. Get it wrong, and everything downstream becomes haphazard.
The EU’s new sustainable finance strategy and Green Bond Standard show what is at stake. Their aim is clear: to help create the first climate-neutral continent by 2050. But the way that sustainability is defined will determine whether such schemes succeed or fail.
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