There are also barriers to increasing sustainable finance in the EU, from the lack of green investment opportunities to the fragmented capital markets within the EU. Putting these obstacles to one side, I would like to highlight some aspects more closely related to sustainable finance. Firstly, we need a taxonomy and common standards for sustainable investments.
These will create certainty and eliminate the need for all actors to verify the greenness of an investment. This will lower the costs associated with green investments, which is one of the requirements for further mainstreaming sustainable finance. But taxonomy and standards alone are not enough unless we have proper data.