The EU wants to speed up the process of saving the planet
The climate issue is gaining more and more urgency. The changes the world is witnessing are forcing all efforts to accelerate the process of minimizing harmful emissions and switching to renewable energy sources. The European Union is extremely concerned about the environmental problem, and has recently called on financial institutions and companies to put their energies into saving the planet. The government has invited them to contribute to a climate-neutral strategy planned for 2050.
These and other postulates are outlined in the concept of sustainable financing, which was recently presented by the European Union. The document publishes concrete steps and targets for different companies, financial institutions and consumers. The EU government is convinced that only by joining forces it will be possible to achieve a significant improvement in the field of climate.
Officials noted that the amount of investment in this area significantly exceeds the capacity of the budget. Therefore, the government encourages commercial organizations and banks to invest money in a high goal. All the more so, the directions related to improving environmental conditions have great potential, and will bring a good income.
It should be noted that climate initiatives are quite actively supported by private businesses. Over the past few years, private companies have invested more money in this segment than was allocated by the European government. However, despite this, the steps to achieve the goals should be more structured and clear.The banking sector deserves special attention, where the risk management structure should be changed. ESG factors, which include social responsibility, corporate policy and environmental factors, need to play a major role here. In other words, the EU government encourages financial market participants to focus not only on benefits, but also on whether they have a positive or negative impact on the environment when making investment decisions.
Last year, the EU presented an updated version of its climate strategy. The document used the example of the pandemic to address the problem of slow progress toward the previously set goals. According to the authors, the crisis that hit due to the outbreak of coronavirus proves that humanity is ill-prepared for large-scale changes. At the same time, the dynamics of climate threats increase every year. To reduce the risks, global measures to adapt to environmental change are necessary. The new EU goal is to reduce greenhouse gas emissions by 55 percent by 2030. In addition, the EU insists that in addition to reducing future emissions, it is necessary to focus on neutralizing the effects of past pollution. Insurance of the population against the consequences of climate change also deserves special attention. So far, in the case of accidents, most payments are borne by the government, not by insurance companies.