In particular, under the European Green Deal and EU Climate Law. The EU also aims to deliver on the EU’s commitments to international climate and environmental objectives. Social and governance aspects are considered, too.
The European Commission estimates the investment gap for the EU’s green transition to be €700 billion p.a. in additional investments until 2030 compared to the previous decade (according to the Commission’s 2023 Recommendation on Transition Finance). To close this gap, the Commission is putting in place the EU Sustainable Finance Framework, aiming to channel private and public funds into the transition to a climate-neutral, climate-resilient, resource-efficient and fair economy. The EU Sustainable Finance Framework builds on three pillars
- disclosure of sustainability information
- the EU Taxonomy, classifying investments as sustainable or not and thus guiding investors
- a toolbox with labels, standards, advisory services and financial support
Supporting SMEs in sustainable finance
The Access to Finance unit in the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) empowers small and medium-sized enterprises (SMEs) to play a central role in Europe’s sustainability transition. Collaborating closely with the Directorate‑General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) and other Commission services, the unit supports the development and implementation of practical policies to ensure SMEs have access to the resources, tools and financing they need to integrate sustainability into their operations.
As observers on the Platform on Sustainable Finance, the unit contributes to the creation of user-friendly tools and simplified approaches that allow SMEs to benefit from the EU Taxonomy while addressing trickle-down effects from reporting obligations under the Corporate Sustainability Reporting Directive (CSRD). For further information, visit the sustainable finance webpage.