European Union Utilizes Finance to Make Europe Climate Neutral by 2050

On Tuesday, 6^th July 2021, European Union said, it is going to be utilizing the markets and banks for the purpose of funnelling hundreds of billions of euros on an annual basis into the sustainable investments an also for creating the climate-neutral continent by the year 2050. The sustainable finance strategy of the European Union has been setting some of the detailed measures and milestones for the companies, financial industries and households for reaching the climate goals of the European Union.

The European Commission said, as the scale of the required investment has been well beyond the capacity of the public sector in the continent, and the main objective of this sustainable finance framework has been for the purpose of channelling the private financial flows into the relevant economic activities.

According to the reports, the member states of the European Union are going to be asked for assessment by June 2023 on how the financial markets of the countries will be contributing to reach the climate goals for eliminating the net emissions of the continent of Europe by 2050, along with assessing the insurers, banks, pension funds and asset managers.

The European Central Bank and the Authorities of the European Union are going to calibrate the right pace for the transition by setting the intermediate targets for the financial industry of Europe, and the European Commission said, it is also going to propose changes to the rules of the bank so that, the ESG (environmental, social and governance) factors will be at the core for managing the risks of their climate goals.