The Sustainable Investment Regulation
At the end of August we wrote about European initiatives for green or
sustainable financing. On 25 September 2019 the Council of the EU
announced that it has agreed its position on a proposed regulation (the
“Sustainable Investment Regulation” or
“SIR”) on the establishment of a framework to
facilitate sustainable investment. This represents a significant
step towards a legally-binding standard for sustainable
finance.
The SIR is intended to make it easier for businesses to attract
capital for sustainable investment from across the EU by
establishing criteria for ascertaining what counts as
environmentally sustainable investment.
The European Parliament had announced its adoption of the SIR in
March 2019. According to the Council's position, the
classification scheme should be established by the end of 2021, to
ensure its full application by the end of 2022.
