Date: 30th December 2020
Author: BETTER FINANCE

While the aim of the EU Ecolabel should be to guide retail investors towards truly sustainable financial products, and at the same time avoid the greenwashing of unsustainable investments, the current proposal creates the exact opposite scenario for the label.

It is labeling unsustainable investments as “green” and not sufficiently promoting targeted and genuine sustainable investments. As a result, the proposal is at odds with the urgency and systemic transformation needs to meet the Paris Agreement, the Sustainable Development Goals and the European Green Deal.