New Report: Monitoring Capital Flows to Sustainable Investments

The Platform on Sustainable Finance has released its latest report on financing a clean and competitive transition, offering a detailed analysis of sustainable investment trends across the EU. The report introduces a new framework for tracking capital flows, using EU taxonomy data to assess corporate transition efforts.

Key Findings:

Sustainable investments are surging – Taxonomy-aligned CapEx from large European firms hit €250 billion in 2023, marking a 34% increase from the previous year.

Transition-related capital flows are rising – €206 billion in additional investments indicate progress, though not fully aligned with taxonomy criteria.

Sectoral disparities persist – Varying alignment across industries underscores the need for sector-specific transition strategies.
Debt financing leads sustainable funding – Green bonds and loans now account for €1.69 trillion in total outstanding green debt finance.

The report emphasizes the growing role of sustainable finance in corporate transition efforts and highlights the need for targeted policies to enhance sectoral alignment.

To find out more details please visit : https://finance.ec.europa.eu/