At such a sluggish economic growth period, banks have taken advantage and made it their brightest spot. $30 trillion worth of treasures remains unregulated. However, this has began to change in recent years.
A project of advancing some ambitious ideas on the way to police green markets is in progress. A group of officials located in Brussels are tirelessly working to make such project successful. It’s expected that EU efforts will end up becoming a benchmark for green markets. The expectations are evident from the federal watchdogs of the US who are absent from the debate. With this, the European Union believes that it’s a global leader, and it’s going to assist with setting the standard. This is according to co-head of the European governmental affairs, Ilan Jacobs.
Despite the huge scandal where Europe was involved in regulatory missteps, which entailed the laundering of money, it has turned out as forefront supporter of issues where the US takes a hand-off approach. The European scandal exposed the shortcomings on the way the rules are implemented. Climate change became a cornerstone of programs for central bankers from both London and Frankfurt. The new commissioner, Ursula, has helped the banks to move green finance to be the agenda of such institutions.
The World Sheriff Introduced by Brexit and US President Trump
The regulations on green finance were agreed in Brussels and are applicable in Europe only. However, the rules made in the United States have worldwide ramification. Corporations that want access to the 16 trillion-Euro economy find it easy adopting standards rather than adjusting to several regimes. The case is evident from the statements made by Facebook Inc., and Microsoft Corporation. These two tech giants stated that they would apply the new data-protection from Europe outside the continent.
Though the EU bloc is unsure on whether they will assist in fighting climate change, they aim to establish definitions for green finance. Besides, the bloc has an objective of weeding out the misleading greenwashing practices that have brainwashed Europeans for so long.
How Green Finance Will Save the Planet
Although Hoerter is not willing to get into the details on how they run their investment plans, the member of the technical expert groups explains that the strategies are voluntary. Hoerter helped draft the present proposal.
He continues to explain that Europe leads the initiative of harmonizing efforts at the global level. Thus, it creates international platforms on sustainable finance collaboratively with other nations. China is among the first countries regulating green finance. However, its practices are aimed at issues like pollution as well as global warming.