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.

This article, presented as a case narrative of E+Co’s experience, delves into the practicalities of impact investing in energy enterprises within developing countries. It showcases how venture investing can generate both positive social impact and financial returns. The case study highlights the importance of leveraging traditional venture capital approaches to create sustainable solutions in the clean energy sector, drawing lessons from E+Co’s extensive work. It offers insights into navigating the complexities of social capital markets while pursuing environmental and social objectives.