The European Court of Auditors (ECA) has published a Special Report calling for the Commission to take more consistent action in the redirection of finance towards sustainable investment. In particular, the Report highlights the need for more consistent criteria when determining the sustainability of EU budget investments, and the importance of a targeted approach to generating relevant opportunities.
The ECA also notes the continuing profitability of unsustainable business, concluding that whilst the work that the Commission has done to promote transparency will help, the underlying issue still needs to be addressed. The Report places particular emphasis on the need for the Commission to fully implement its 2018 Sustainable Finance Action Plan.
The Commission has published a response highlighting its efforts on legislating in the area of sustainable finance, as well as referencing the Strategy for Financing the Transition to a Sustainable Economy which it published on 6 July 2021. It accepts the need to fully implement the 2018 Action Plan, but also states that most of the actions therein have already been completed. The Commission has accepted all other recommendations from the ECA’s Report either in whole or part.