The European Commission (EC) has proposed reducing the minimum threshold for green equity investments and introduced a transition element for the planned EU Ecolabel for retail sustainable financial products after the first round of market feedback described the criteria as being ‘too ambitious and not achievable’.
According to the EC’s second Technical Report on the issue, published just before the start of the Christmas holidays, most stakeholders “considered the criterion proposal to be 'strict' and therefore counterproductive to the uptake of the EU Ecolabel.”
The Ecolabel is an existing EU certification awarded to a range of products which meet high environmental standards aimed at end consumers. The scheme is being extended to include financial products for the first time to “enable retail investors to identify products that finance the climate and ecological transition”.
The revised criteria require a minimum of 60% of portfolio ass…