Switched On EU Dials Down Green Finance Rules as US Wages ESG War
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Apr 3, 2025 Joining the conversation are Maia Mesanger and Jameson McLennan, both sustainable finance analysts at BloombergNEF. They dive into the EU's recent rollback of sustainable reporting regulations, sparking concerns over transparency and investment in climate initiatives. The duo also discusses the competitive tensions with the US and the proactive steps being taken by the Asia Pacific region. Their insights shed light on the challenges small businesses face under new regulations and the urgent need for clearer policies to support sustainable finance in a shifting global landscape.
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EU Sustainability Reporting Policies Weakened
- The EU's sustainable finance reporting policies, including CSRD, CSDDD, and EU taxonomy, were initially considered groundbreaking.
- These policies have been weakened, limiting the scope of reporting requirements for companies.
EU Directives Limit National Governments
- Changes in EU directives require all member states to scale back their sustainability reporting requirements.
- There seems to be no government wanting to go beyond the scaled-back EU regulations.
Reasons for EU's Rollback
- The EU's rollback on sustainable finance regulations stems from criticisms of being overly burdensome, especially for SMEs.
- This shift is also influenced by the US pushback against sustainability reporting and competitiveness concerns.