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EU labeling system rolled out as possible international standard

April 22, 2021

Bloomberg Green:

The European Union’s new standards for classifying sustainable investment will change the way economies operate, divert cash flows and reverberate across the globe, the officials in charge of the new rulebook said.

A labeling system unveiled on Wednesday is nothing short of a “re-engineering of the economy and re-engineering of the financial world,” Mairead McGuinness, the European Commissioner responsible for financial services, said in an interview. “The direction of travel is in one way only.” 

Ahead of the virtual climate summit hosted by U.S. President Joe Biden, the European Commission announced a first set of criteria for green investments, which will allow producers of rechargeable batteries, energy efficiency equipment, low-emission cars, wind and solar power plants to earn a formal green label. The Commission also called for a significant expansion of climate reporting requirements to cover some 50,000 companies in the continent.

[Nikos Chrysoloras and Ewa Krukowska]

More: EU Eyes ‘Re-Engineering’ of Global Finance With Green Standards

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