Gas Free Pensions is proud to be one of 52 signatories of an open letter to the EU Commission, requesting them to include a sustainable finance taxonomy in their upcoming Renewed Sustainable Finance Strategy.
The EU Commission is planning to release a green taxonomy, which would classify investments and financial products as sustainable, and aligned with the EU transition pathway. This taxonomy can be useful, for identifying truly sustainable activities, and avoiding greenwashing. However, it focuses on an incentive system to encourage financial actors to invest in green activities. It does nothing to discourage financial actors from investing in the sectors and activities that are causing the most damage to our climate and our planet.
European banks, and other financial actors continue to provide huge amounts of funding to fossil fuel projects, and are currently steering us down a path of global warming well above 1.5°C. Creating a taxonomy that highlights and discourages these damaging activities will encourage the financial sector to align their activities with the Paris Agreement, and speed up the EU transition to a sustainable future. For more information, see the full press release from Change Finance here.