Past Event

How can sustainable finance contribute to the Paris climate goals?

What is the role of sustainable finance in reaching the Paris Climate goals? What are the specific proposals towards this goal and which are the challenges facing the implementation of green finance?

Date: September 25, 2017, 12:30 pm Topic: Energy & Climate

vIDEO & AUDIO RECORDINGS

SUMMARY

A call for a recalibrated regulation
Peter Blom (Chair of Global Alliance for Banking on Values and CEO of Triodos Bank) stressed the importance of sustainable finance for fighting climate change. Due to its importance, the financial sector should get a more important role in fighting climate change.
Blom called for (a) refining the purpose of banks, (b) a recalibration of the regulatory framework to support sustainable finance, (c) a more diverse financial ecosystem, (d) improved access to sustainable finance for all citizens, (e) a better legal framework to develop market opportunities, and (f) a new reporting schemes that focus more on the long-term perspective.
In particular, Blom asked for a change in the capital requirements of assets to reflect better the true risks of investments: due to their long-term risks “brown” investments should be backed with more capital “green” investments.

New fiduciary duties
Catherine Howarth (Chief Executive of ShareAction) emphasized the importance of changing the current fiduciary duties of bank. Instead of solely focusing on short-term profits, consumers demand a more integral approach that will also pay off in the long-run.
Thus, new codes of conduct/set of duties for banks (that also account for environmental, social, and governance metrics) are necessary to reach that goal. She also emphasized the importance of improving transparency and accountability.

Voluntary approach, public-private risk sharing, and prudential framework
Stewart James (Managing Director of Group Government Affairs at HSBC) stressed three main points in its intervention.
James pointed out that most traders wants to increase investments into sustainable finance yet current information is insufficient. He claimed that a voluntary approach together with some pressure from the public sector (such an enabling legislation) is the way to go instead of passing new regulations. James mentioned the currently high investment gap (especially in infrastructure) which should be closed to reach the climate goals. This cannot only be stemmed by the private sector (due to political and legal risks) thus a public-private risk sharing will be needed to encourage more investments. Finally, James argued that financial regulators should use their prudential frameworks and existing tools to enable more investment into sustainable finance.

A new mindset of long-term thinking
Dirk Schoenmaker (Senior Fellow at Bruegel) proposed a three-step approach to foster investments in sustainable finance. (1) A change of mindset to include not only shareholder value, but also stakeholder value (includes society) and even common good value (includes environment) into companies’ calculations. (2) A change in thinking to a more long-term perspective. In a long-term relationship, loyal capital could be used a tool of change. (3) Finally, Schoenmaker proposed loyalty share for professional investors and more sustainable retails funds for consumers.

Opportunities for Europe
In his closing speech, Olivier Guersent (Director General of DG FISMA, European Commission) confirmed support by the European Commission to foster sustainable finance. He promised that Commission will deliver well calibrated proposals and pointed out that the current political situation in the US will pose challenges for Europe, but also creates opportunities for Europe to step forward as a leader in the topic of sustainable finance.

Event notes by Alexander Roth.

EVENT MATERIALS

Presentation by Dirk Schoenmaker

Schedule

Sep 25, 2017

12:30-13:00

Check-in and lunch

13:00-14:15

Panel discussion

Chair: Viktoria Dendrinou, Reporter, Bloomberg

Peter Blom, Chair, Global Alliance for Banking on Values & CEO, Triodos Bank

Catherine Howarth, Chief Executive, ShareAction

Stewart James, Managing Director, Group Government Affairs, HSBC

Dirk Schoenmaker, Non-Resident fellow

14:15-14:30

Coffee break

14:30-15:00

Closing speech: Europe’s Sustainable Finance Agenda

Olivier Guersent, Director General, European Commission, DG FISMA

15:00

End

Speakers

Peter Blom

Chair, Global Alliance for Banking on Values & CEO, Triodos Bank

Viktoria Dendrinou

Reporter, Bloomberg

Olivier Guersent

Director General, European Commission, DG FISMA

Catherine Howarth

Chief Executive, ShareAction

Stewart James

Managing Director, Group Government Affairs, HSBC

Dirk Schoenmaker

Non-Resident fellow

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

matilda.sevon@bruegel.org

Read article More on this topic More by this author

Podcast

Podcast

How to reform European transport and tackle rising emissions

The transport sector is the Europe's biggest obstacle to meeting its climate-change targets. But there are several ways in which the EU can take the initiative and lead both its citizens and its automotive industry in a cleaner direction. Bruegel fellows Simone Tagliapietra and Georg Zachmann discuss their research and policy conclusions in this episode of 'The Sound of Economics'

By: The Sound of Economics Topic: Energy & Climate Date: April 24, 2018
Read article Download PDF More on this topic

Book/Special report

Developing the EU long term climate strategy

To ensure that EU climate policy is in line with the goals of the Paris Agreement, and takes into account substantial recent shifts in the technical and political framework, the EU needs a new long-term climate strategy that will supersede the 2050 Roadmap that was issued in 2011.

By: Georg Zachmann and Andrei Marcu Topic: Energy & Climate Date: April 18, 2018
Read article Download PDF More on this topic

Policy Brief

Addressing Europe’s failure to clean up the transport sector

The European Union has the long-term vision to reduce its greenhouse gas emissions by 80-95 percent by 2050 compared to 1990 and it adopted in 2014 a binding 40 percent emissions reduction target to be achieved by 2030. Transport is therefore set to become the main obstacle to the achievement of the EU’s decarbonisation goals.

By: Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: April 9, 2018
Read about event More on this topic

Past Event

Past Event

Bank assets and business models: addressing complexity

At this event, we discussed the lack of transparency and problems in valuing correctly significant parts bank assets in the euro area based on an extensive study by the Bank of Italy.

Speakers: Simon Ainsworth, Paolo Angelini, Josina Kamerling, Martin Merlin, Alexander Lehmann and Nicolas Véron Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 21, 2018
Read about event More on this topic

Past Event

Past Event

The future of the EU budget: MFF post-2020

Which should be the priorities for the Multiannual Fiscal Framework post 2020?

Speakers: Roger Havenith, Günther H. Oettinger, Charlotte Ruhe, Margit Schratzenstaller-Altzinger and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 7, 2018
Read about event

Past Event

Past Event

(How) could European safe assets be constructed?

At this event we looked at the ESRB task force’s investigation on safe assets.

Speakers: Levin Holle, Sam Langfield, Anne A. Leclercq and Guntram B. Wolff Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 1, 2018
Read about event More on this topic

Past Event

Past Event

Bruegel - Financial Times Forum: The future of euro-area governance

The third event in the Bruegel - Financial Times Forum series looked into the future of euro-area governance.

Speakers: Maria Demertzis, Gideon Rachman, Manfred Weber and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 27, 2018
Read article More on this topic More by this author

Blog Post

Green bonds: who is to certify ‘sustainability’?

Poland’s issue of a green bond earlier this month was the country’s second financing of this type, and the first ever repeat issue by a sovereign. It has revived the debate as to whether there should be a single regulatory standard to certify the environmental quality of financial assets. This will be a key issue for the EU’s sustainable finance strategy which is due to be released shortly.

By: Alexander Lehmann Topic: Finance & Financial Regulation Date: February 19, 2018
Read about event More on this topic

Past Event

Past Event

Is there life After TTIP? The future of transatlantic economic relations

The partnership between North America and Europe is becoming unsettled and uncertain. How can we deal with this new situation that threatens the prosperity and ultimately the position of North America and Europe in the global economy.

Speakers: Maria Demertzis, Daniel S. Hamilton, Luisa Santos and André Sapir Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 19, 2018
Read about event More on this topic

Past Event

Past Event

The implications of Blockchain platforms

The disruptive forces of block chain technologies in markets and industries: a European perspective

Speakers: Anna Dimitrova, Julio Faura, Georgios Petropoulos, Johan Pouwelse and Pēteris Zilgalvis Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 6, 2018
Read about event More on this topic

Past Event

Past Event

Europe’s immigration and integration challenges: Financial and labour market dimensions

The event, organised by Bruegel in cooperation with the Institute for International Affairs will discuss these and related questions and will also feature the launch in Rome of the study authored by Zsolt Darvas on the impact and integration of migrants in the European Union.

Speakers: Roberto Ciciani, Zsolt Darvas, Marcela Escobari, Tatiana Esposito, Manjula M. Luthria, Carlo Monticelli, James Politi and Nathalie Tocci Topic: European Macroeconomics & Governance Location: Banca Monte dei Paschi di Siena, Via Mighetti 30/A, Rome, Italy Date: February 2, 2018
Read about event More on this topic

Past Event

Past Event

Why think tanks matter in the era of digital and political disruptions

Bruegel is pleased to host this panel discussion as part of the global launch of the 2018 Global Go To Think Tank Index, published by the University of Pennsylvania’s Think Tanks and Civil Societies Program.

Speakers: Matt Dann, Shada Islam and Hlib Vyshlinsky Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 30, 2018
Load more posts