Discussion: Green Bonds and Banking and Capital Markets from a Practitioner’s Perspective

Abstract

The European Union (EU) has been in the forefront in the development of a concrete strategy to support the transition to a low-carbon, resource-efficient, and sustainable economy. Under the European Green Deal, the EU has committed to no net emissions of greenhouse gases by 2050, which will be achieved by carrying out a set of actions clearly defined by the European Green Deal roadmap virtually impacting every area of the economy. The success of the EU sustainability agenda will, also, heavily rely on the extent to which sustainable finance will be able to support the channelling of private investment into the transition. The chapter discusses how the EU sustainable finance framework is becoming increasingly intricate and intertwined due to the inevitable overlaps between the multiple legislative initiatives. Financial institutions have been placed at the centre of the vast regulatory framework already foreseen by the EU governing bodies; the complexity of the legislative framework and existing gaps is materialising into concrete issues which need to be addressed to reach the EU goals for a sustainable economy.