How green is green enough? The changing landscape of financing a sustainable European economy

Abstract

Changing narratives surrounding the climate and environmental crisis have shaped the degree of ambition in the approach of EU policy-makers towards the sustainability transition and sustainable finance. This paper presents the evolution of EU sustainable finance policies between 2015 and 2019, focusing on the EU Taxonomy, arguing that as European narratives have shifted towards highlighting the severity of the climate and environmental crises, EU sustainable finance policies have also accelerated. The paper considers the IPCC SR1.5, published in October 2018, as one catalyst for this shift in narratives and the subsequently stronger policy responses, culminating in the European Green Deal.