Green MEP, Molly Scott Cato, has welcomed the overwhelming support for her report on sustainable finance in a vote today in the European Parliament. Dr Scott Cato, who is the first ever professor of Green Economics, said:
“Today’s vote is a signal of the positive shift taking place towards investment in sustainable sectors of the economy. I am delighted to see that the sustainable finance agenda now has almost universal support, not only in the Parliament but also from the Commission – who have made this a priority. There is also growing support from world leaders, most notably President Macron of France.”
As identified last week by the Commons Environmental Audit Committee, climate change requires the urgent removal of fossil fuel assets from pension portfolios.
Dr Scott Cato responded:
“Since we will have eliminated fossil fuels from our economy by the middle of the century we also need to eliminate assets that depend on them from our financial system.”
“There is a growing realisation, across the political spectrum, that if we are to safeguard future generations from climate chaos and meet our obligations under the Paris Agreement, we must rapidly decarbonise. Finance offers a powerful tool to accelerate that transition and a common understanding of what constitutes sustainable finance will help guide investment towards such a transition.”
The Parliament’s report provides a green light to the Commission to pursue its legislative package on sustainable finance and its ambition to define what should be considered as sustainable investment. Dr Scott Cato concluded:
“We need to see a race to the top on sustainable development: to take the best examples of sustainable finance in action from across the EU and use these to identify minimum standards for all.”