Sustainable Investing

European Green Deal

The European Green Deal is a commitment by the European Union to meet the goals of the Paris Agreement, principally by making the 27-nation bloc carbon neutral by 2050. As such it contains a wide range of policy initiatives with the main aim of decarbonizing member states.

Its first target is to achieve a 55% reduction in greenhouse gas emissions compared to 1990’s levels by 2030. Such is its level of ambition that European Commission President Ursula von der Leyen has described it as Europe’s “man on the moon moment”, as Europe would become the world’s first carbon-neutral continent at the current projections if the 2050 target is met.

Achieving these goals means reviewing current laws and creating new ones regarding issues such as compulsory decarbonization for high-carbon companies, and new regulatory frameworks for previously high-emission agricultural practices. New frameworks are planned for funding these changes, including the Sustainable Finance Action Plan, which will encourage more sustainable investment across the bloc, and the Sustainable Finance Disclosure Regulation, which will enhance reporting on how investment strategies use ESG for portfolio construction.

Creating returns that benefit the world we live in

Carbon initiatives

Other initiatives include a Carbon Border Adjustment Agreement to punish higher-emitting member states, and an Emissions Trading System, under which carbon quotas can be swapped to level out incongruities between nations. The current Energy Taxation Directive, which monitors subsidies for fossil fuels, is being revised.

There will also be a greater emphasis on moving to a circular economy, protecting biodiversity, and improving the energy efficiency of all buildings. The EU aims to increase the amount of forested land across its territory to act as a carbon sink, and will encourage investment in shared mobility, electrified transport systems and bio-based technologies.

Overall, the Green Deal will be funded through the InvestEU program which envisages EUR 1 trillion being spent by member states over the next decade. One estimate sugggests that achieving carbon neutrality by 2050 will require at least EUR 230 billion in annual investments into lower-carbon business models by 2030.

See also:

Sustainable Finance Action Plan Sustainable Finance Disclosure Regulation EU Taxonomy


Let's keep the conversation going

Keep track of fast-moving events in sustainable and quantitative investing, trends and credits with our newsletters.

Stay updated
Robeco

Robeco aims to enable its clients to achieve their financial and sustainability goals by providing superior investment returns and solutions.

Important information
The Robeco Capital Growth Funds have not been registered under the United States Investment Company Act of 1940, as amended, nor or the United States Securities Act of 1933, as amended. None of the shares may be offered or sold, directly or indirectly in the United States or to any U.S. Person (within the meaning of Regulation S promulgated under the Securities Act of 1933, as amended (the “Securities Act”)). Furthermore, Robeco Institutional Asset Management B.V. (Robeco) does not provide investment advisory services, or hold itself out as providing investment advisory services, in the United States or to any U.S. Person (within the meaning of Regulation S promulgated under the Securities Act).
This website is intended for use only by non-U.S. Persons outside of the United States (within the meaning of Regulation S promulgated under the Securities Act who are professional investors, or professional fiduciaries representing such non-U.S. Person investors. By clicking “I Agree” on our website disclaimer and accessing the information on this website, including any subdomain thereof, you are certifying and agreeing to the following: (i) you have read, understood and agree to this disclaimer, (ii) you have informed yourself of any applicable legal restrictions and represent that by accessing the information contained on this website, you are not in violation of, and will not be causing Robeco or any of its affiliated entities or issuers to violate, any applicable laws and, as a result, you are legally authorized to access such information on behalf of yourself and any underlying investment advisory client, (iii) you understand and acknowledge that certain information presented herein relates to securities that have not been registered under the Securities Act, and may be offered or sold only outside the United States and only to, or for the account or benefit of, non-U.S. Persons (within the meaning of Regulation S under the Securities Act), (iv) you are, or are a discretionary investment adviser representing, a non-U.S. Person (within the meaning of Regulation S under the Securities Act) located outside of the United States and (v) you are, or are a discretionary investment adviser representing, a professional non-retail investor.


Access to this website has been limited so that it shall not constitute directed selling efforts (as defined in Regulation S under the Securities Act) in the United States and so that it shall not be deemed to constitute Robeco holding itself out generally to the public in the U.S. as an investment adviser. Nothing contained herein constitutes an offer to sell securities or solicitation of an offer to purchase any securities in any jurisdiction. We reserve the right to deny access to any visitor, including, but not limited to, those visitors with IP addresses residing in the United States. This website has been carefully prepared by Robeco. The information contained in this publication is based upon sources of information believed to be reliable. Robeco is not answerable for the accuracy or completeness of the facts, opinions, expectations and results referred to therein. Whilst every care has been taken in the preparation of this website, we do not accept any responsibility for damage of any kind resulting from incorrect or incomplete information. This website is subject to change without notice. The value of the investments may fluctuate. Past performance is no guarantee of future results. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. For investment professional use only. Not for use by the general public.