Green Financial Products in the EU — A Critical Review of the Status Quo
Abstract The financial sector plays an important role in supporting the green transformation of the European economy. A critical assessment of the current regulatory framework for sustainable finance in Europe leads to ambiguous results. Although the level of transparency on environmental, social an...
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| Format: | Article |
| Language: | English |
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Springer
2022-08-01
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| Series: | Intereconomics |
| Online Access: | https://doi.org/10.1007/s10272-022-1057-2 |
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| _version_ | 1841525648084959232 |
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| author | Volker Brühl |
| author_facet | Volker Brühl |
| author_sort | Volker Brühl |
| collection | DOAJ |
| description | Abstract The financial sector plays an important role in supporting the green transformation of the European economy. A critical assessment of the current regulatory framework for sustainable finance in Europe leads to ambiguous results. Although the level of transparency on environmental, social and governance aspects of financial products has improved significantly, it is questionable whether the complex, mainly disclosure-oriented architecture is sufficient to mobilise more private capital into sustainable investments. It should be discussed whether a minimum taxonomy ratio or Green Asset Ratio has to be fulfilled to market a financial product as “green”. Furthermore, because of the high complexity of the regulation, it could be helpful for private investors to establish a simplified green rating, based on the taxonomy ratio, to facilitate the selection of green financial products. |
| format | Article |
| id | doaj-art-aebdf944bc334815b7d34c27f51e9474 |
| institution | Kabale University |
| issn | 1613-964X |
| language | English |
| publishDate | 2022-08-01 |
| publisher | Springer |
| record_format | Article |
| series | Intereconomics |
| spelling | doaj-art-aebdf944bc334815b7d34c27f51e94742025-01-17T08:34:13ZengSpringerIntereconomics1613-964X2022-08-0157425225910.1007/s10272-022-1057-2Green Financial Products in the EU — A Critical Review of the Status QuoVolker Brühl0Center for Financial Studies, Goethe-Universität FrankfurtAbstract The financial sector plays an important role in supporting the green transformation of the European economy. A critical assessment of the current regulatory framework for sustainable finance in Europe leads to ambiguous results. Although the level of transparency on environmental, social and governance aspects of financial products has improved significantly, it is questionable whether the complex, mainly disclosure-oriented architecture is sufficient to mobilise more private capital into sustainable investments. It should be discussed whether a minimum taxonomy ratio or Green Asset Ratio has to be fulfilled to market a financial product as “green”. Furthermore, because of the high complexity of the regulation, it could be helpful for private investors to establish a simplified green rating, based on the taxonomy ratio, to facilitate the selection of green financial products.https://doi.org/10.1007/s10272-022-1057-2 |
| spellingShingle | Volker Brühl Green Financial Products in the EU — A Critical Review of the Status Quo Intereconomics |
| title | Green Financial Products in the EU — A Critical Review of the Status Quo |
| title_full | Green Financial Products in the EU — A Critical Review of the Status Quo |
| title_fullStr | Green Financial Products in the EU — A Critical Review of the Status Quo |
| title_full_unstemmed | Green Financial Products in the EU — A Critical Review of the Status Quo |
| title_short | Green Financial Products in the EU — A Critical Review of the Status Quo |
| title_sort | green financial products in the eu a critical review of the status quo |
| url | https://doi.org/10.1007/s10272-022-1057-2 |
| work_keys_str_mv | AT volkerbruhl greenfinancialproductsintheeuacriticalreviewofthestatusquo |