Sustainable Investing and Green Finance:: Boosting Markets by Solving Ambiguities

The rapid growth of sustainable investing and green finance necessitates a uniform framework and common metrics to evaluate their impact. This paper highlights how the expansion of these markets often introduces ambiguities and risks, leading to inadequate investments. It emphasizes the policy priority of establishing clear definitions and measurement standards for climate mitigation, environmental, and social goals, especially in light of the European Commission’s Action Plan on sustainable finance. The goal is to facilitate informed investment decisions and ensure the effective channeling of capital towards sustainable development.