EU Science Hub

Sustainable finance

The European Union is fully committed to transform its economy and society and put it on a more sustainable path.

To fight climate change, the EU targets

  • to become the first carbon neutral continent by 2050
  • 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.

EU climate initiatives

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 develpment 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.

Promoting interaction between science, policy, and private sector

Finally, the JRC promotes the interaction among policymakers, the scientific community and private-sector experts active in the field of sustainable finance. For this purpose, the JRC has organized events such as the academic conference on “promoting sustainable finance” and a joint workshop with the European Banking Authority on "banking regulation and sustainability".

Summer school on sustainable finance

The JRC also organises a summer school on sustainable finance. The material from its third edition, which has been held online during 6-8 July 2021, as well as from the first and the second editions of the Summer School can be found in the respective links.