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Sustainable Finance

Sustainable finance refers to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector, in order to secure a more sustainable economy.

EU climate initiatives

To fight climate change, the EU targets

  • to become the first carbon neutral continent by 2050
  • to reduce by 55% its greenhouse gas emissions by 2030 as compared to 1990.

To meet the EU Green Deal's climate and environmental ambitious goals, it is estimated that an annual investment gap of approximately EUR 470 billion needs to be bridged.

Clearly, financing the EU Green Deal surpasses the capacity of national budgets alone.

Moreover, the EU is fully committed to mainstream social and governance considerations in investment strategies.

In the context of sustainable finance, the Commission took several initiatives:

JRC Science for policy support

In this context, JRC scientific and technical knowledge supports the development of several policy actions, including the following:

  • On the establishment of the EU list of environmentally sustainable economic activities, i.e. the EU taxonomy.
  • On the development of standards and labels. The JRC contributed to the work of the TEG on sustainable finance and its EU green bond standard subgroup and carried out analyses underlying the development of an EU Ecolabel for financial products by defining suitable criteria to identify the top environmentally performing products.
  • On strengthening the resilience of the financial system. The JRC is supporting the work of the European systemic risk board providing research input on the quantification of transition and physical risks related to climate change, including by providing data on natural disasters from the JRC risk data hub, as well as by developing models for climate stress-testing.
  • Findings of the related research have been published in various outlets including the JRC’s technical reports series and top academic journals and have fed into the policy making process.

Read more about our work

EU Taxonomy

How the JRC supports the establishment of the EU Taxonomy, a list of environmentally sustainable economic activities.

Sustainable investment

How the JRC supports the EU Green Bond Standard, the star of sustainable capital markets.

Sustainability-related risks

The ability of banks, asset managers and insurers to identify and manage risks and absorb financial losses potentially arising from them, is key for financial stability.

Sustainable Finance Research Forum

The Sustainable Finance Research Forum is an open platform to discuss approaches and experiences among policymakers, academics and the financial sector’s community.

Sustainable Finance Summer School

The JRC Summer School on Sustainable Finance takes place annually and brings together the community of academics, policymakers and professionals who work on topics related to Sustainable Finance.

Upcoming events

Past events