Regulatory Innovation in Sustainable Finance: The EU Example and Case for Global Integration
Peter Munro, Head of IR & Sustainable Finance, European Investment Bank (EIB); Co-Chair, Oxford University Society of Luxembourg
Notes & Changes
Regulation on sustainable finance has become a strategic matter for leaders in the public and private sectors: They have sought to devise rules and regulations that can harness markets to address urgent sustainability priorities, including climate action; aiming to do so in a manner that addresses the realities of implementation. The EU has been a leading innovator in this area, which has garnered global momentum, but also presents substantial challenges for global regulatory alignment and market integration, which are vital for scaling up. The EU’s Climate Bank, the EIB, has been at the heart of platforms advising the European Commission on the design and usability of sustainable finance regulations across borders. This has been informed by the EIB’s contributions to and global testing of EU rules and their precursors, notably global initiatives for voluntary regulation, including the Green Bond Principles. The workshop will focus on some influential initiatives, including those on Taxonomy and Sustainable Bonds. It will draw on experience from vantage points including the EIB, the EU Platform on Sustainable Finance (advising the EC), and the International Capital Markets Association, the trade body that convened pioneering voluntary regulation.
Attendees may wish to review market-led and regulatory literature, such as: “Overview of Sustainable Finance” (EC, current), “[EU] Sustainable Finance – Implementation timeline” (ESMA, Aug 2023), “Green Bond Principles” (ICMA, 2022), “Responsible Investment in Fixed Income Markets” (Ch. 20, 23; Routledge 2022), “Platform recommendations on data and usability” (Part 6 “International Considerations”, EU PSF, Oct 2022), CSRD spotlight: Get up to speed on required EU taxonomy disclosures” (podcast, PwC Nov 2023), “GTAG Advice on Development of a UK Green Taxonomy” (Anna-Marie Slot et al, Ashurst, 2022), “Green Finance Strategy 2.0“ (Dr Ben Caldecott, Smith School, University of Oxford, 2022). For more, see Oxford sustainable finance initiatives.
The chair and discussant of the talk is Dr Felix Pflücke, and a light lunch will be served.