Finance Finland supports the aims of EU sustainable finance projects
- Finance Finland endorses the goals of the Paris Agreement.
- We support the aims of EU sustainable finance projects, but market flexibility must be maintained. Companies should be given the freedom to innovate and enable different ways of doing sustainable finance.
- Past years’ experiences have shown that the broad scope of sustainable finance makes it a difficult phenomenon to regulate. Because regulation has long-term impact on investment, it must be carefully prepared and based on adequate impact assessment.
Sustainable finance refers to financial sector economic activities that promote the aims of sustainable development. It is often related to lending and investment or, for insurers, on insurance policies. In recent years, the EU has issued regulation on sustainable investment, and banking supervisors have issued guidance on how sustainability risks should be addressed in lending activities.
Some key legislative files in sustainable finance are the Taxonomy Regulation, the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the Sustainable Finance Disclosure Regulation (SFDR).
The financial sector is heavily regulated, and although the goals of sustainable finance are worth pursuing, it is important that the legislation does not hinder innovation and growth. Therefore, Finance Finland welcomes the simplification measures that are also performed on sustainable finance legislation, for example through the ‘Green Omnibus’ (Omnibus I) and the SFDR Review, both proposed by the Commission in 2025.
Finance Finland endorses science-based sustainability classifications that align with the goals of the Paris Agreement. The classifications should be based on the recommendations of the Technical Expert Group (TEG) set up by the Commission.
Contact our experts
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Aurora Idänpää
Legal Adviser
Sustainable finance
