New Green Label for Financial Products
WWF and Ecos have introduced a green label for financial products. It should only be awarded to green financial products.
After the European Union’s controversial designation of gas and nuclear power plants as climate-friendly financial investments, environmental organizations have put their own “green” financial label on them.
Banks, investors and insurers can use it to verify that their investments are eco-friendly based on scientific criteria, according to a statement by several organizations including the WWF and Ecos on Wednesday.
The e-car infrastructure is green and eco-friendly at the same time
For example, electric car infrastructure is marked as “green”, but electricity production from fossil fuels is marked as “red” – i.e. climate-damaging.
The initiative aims to provide clarity to investors after the EU classified gas power plants, nuclear power plants, tree burning, intensive deforestation and other harmful activities in the EU classification as ‘sustainable’.
In the ranking, the European Union lists the sectors in which it is possible to invest to combat climate change.
The EU classification caused problems
Since the beginning of January, investments in gas or nuclear power plants have been classified as climate friendly. This has led to significant debate and criticism from environmental organizations, as burning the gas emits climate-damaging carbon dioxide and nuclear fission produces radioactive waste.
Austria and Luxembourg, as well as several organizations, are processing the EU designation.
WWF and Echoes want to create clarity with stricter standards
Now the WWF, Ecos and other environmental organizations want to create “hard standards” with their own classification so that financial institutions can better assess what is climate-friendly and what is not.