INDEPENDENT & TRIPARTITE
HIGH LEVEL GROUP ON
FINANCING SUSTAINABILITY TRANSITION
The High Level Group on Financing Sustainability Transition was launched in 2018.
In recent years, governments have taken ambitious commitments to engage the industrial transition towards a more sustainable model, the so-called circular economy. Estimates show that around €180 billion of annual additional investments are required to meet the EU 2030 climate and energy targets, and a multiple of this sum to meet the 2050 objectives. The Paris Climate Agreement has added pressure for radical innovation.
It is not obvious how the wholescale transformation of large, particularly energy intensive industries with significant investments in fixed assets can be managed within the current regulatory frameworks.
This HLG is chaired by Pietro Carlo Padoan, former Minister of Economy and Finance of Italy.
Previous chair: Jeroen Dijsselbloem, former Minister of Finance of the Netherlands and chairman of the Eurozone Group of Finance Ministers.
The purpose of this HLG is to make a holistic investigation all policy and regulatory framework conditions required to enable large-scale, transformational investments that are needed in industry infrastructures, production processes and business models, at all stages of the value chain, in order to meet European and international commitments on climate, energy and environment.
The purpose also is to provide advice to the European Council and Commission about the necessary changes in these framework conditions to facilitate a transition to a circular economy and to achieve the Paris climate goals.
Beyond sustainable finance, there are other issues to be explored and other perspectives needed to achieve a timely and economically feasible transition, such as risk management, stock market rules, investment criteria and others, monetary policy, accountancy rules and rating criteria, to name but a few. This HLG will also focus on how public and private finances are used to enable the transition, in the broader context of the Eurozone rules and procedures.
The following people, from the European and national public sector, from corporations and from academia, gave their time and expertise to the work on financing sustainability transition management: