European banks and governments must make a number of changes to encourage continued green investments.
That’s according to the European Banking Federation (EBF), which has made a series of recommendations for these groups to help improve environmental, economic and social sustainability across the economy.
It says clear and certain policies, solid regulations and an appropriate industrial strategy are essential to creating the right kind of environment for investors to get involved with clean energy projects.
The EBF says the development of consistent naming systems, clearly defined standards and principles and a solid disclosure framework would improve confidence and increase the level of involvement from investors.
It says climate concerns must be integrated into businesses’ risk management strategies if they aren’t already.
The group believes it is essential to not only introduce the right subsidies at the right time but also to phase-out inappropriate subsidies as soon as possible.
The EBF says banks should encourage retail investors’ understanding of sustainable projects’ positive consequences and share useful knowledge and information among themselves.