EU Lawmakers Approve Criteria For Sustainable Investments

Law360, London (June 18, 2020, 5:46 PM BST) -- European Union lawmakers on Thursday backed green finance rules that will set the conditions new products will have to meet to be deemed "green and climate-friendly" investments.

The European Parliament waved through proposals for a taxonomy that will restrict which investments can be classed as green and force providers of financial products to disclose which investments meet the criteria, from the end of 2021.

The hope is that this new classification system will put a halt to so-called greenwashing — a dubious practice in which funds and businesses label investments as environmentally friendly when they are not — as well as helping investors...

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