Green financial products in the EU: A critical review of the status quo

Volker Brühl

No 677, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: The financial sector plays an important role in financing 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 ESG aspects of financial products has been significantly improved, 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 the understanding of private investors to establish a simplified green rating, based on the Taxonomy ratio, to facilitate the selection of green financial products.

JEL-codes: G10 G20 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-eec, nep-ene, nep-env and nep-hme
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:677

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