Antonio Muñoz Aunión (University of Cadiz)
The EU’s response to Eco-laundering: a virtuous or a flawed circular economy?
For the achievement of climate objectives and the challenge of sustainability, the involvement of the private sector is considered essential. The provision of resources by the financial sector towards sustainable businesses and economic activities would facilitate the transition to a low-carbon economy that is more respectful of environmental and social objectives. To this end, the European Commission launched, in March 2018, the “Action Plan: financing sustainable development “1, which pursued this objective of integrating sustainability into financial analysis and investment decisions. The result was the approval of three regulations, among which the “Taxonomy Regulation” stands out as the centerpiece. The objective is to determine when an economic activity is sustainable in order to establish the degree of sustainability of an investment. The objective is clear: to provide investors with information on sustainability so that they can make informed decisions on the matter, which will result in transparency and fair play rules for civil society.