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Part III Sustainable Finance, 14 The Evolution of the Regulatory Framework Governing Climate Change and Sustainable Finance in the EU and UK

Christos V. Gortsos, William Blair

From: International Monetary and Banking Law post COVID-19

Edited By: William Blair, Christos Gortsos, Chiara Zilioli

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 19 April 2024

Banking — Eurobond — Financial regulation — Monetary system — European Banking Authority (EBA) — International Monetary Fund (IMF)

This chapter focuses on the evolution of the regulatory framework governing climate change and sustainable finance in the EU and the UK. It clarifies that sustainable finance is not limited to the climate change issue. The European Union (EU) has established a detailed rules-based sustainable finance legal structure (including a unique ‘Taxonomy framework’), while the United Kingdom (UK) developed an approach based on principles. The chapter tackles how the regulatory system is taking shape despite having no global consensus over the issue correlating to climate change and sustainable finance. According to the United Nations Conference on Trade and Development (UNCTAD), if the sector continues to grow, the sustainable investment market needs to address greenwashing concerns, the niche market risk, so that sustainable investment becomes a market norm, and the geographical imbalance of investments transforming the market from a developed-country phenomenon to a global market.

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