EU rule change highlights difficulty of defining ‘green’

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Financial Times 16h ago

EU rule change highlights difficulty of defining ‘green’ - Financial Times

Quick Summary:

If the green bond market were to be restricted to environmentally friendly companies, she argued, “what it can deliver is going to be fairly limited”.

The U-turn applied only to bonds, meaning equity funds advertised as green will still need to exclude stocks based on issuers’ emissions.

In October, the European Securities and Markets Authority drew backlash from investors when it published rules that would have blocked ESG funds with names such as “green” and “environmental” from investing in big polluters.