Mainstreaming climate into the EU budget and financial markets

To achieve the EU’s 2030 targets agreed in Paris, preparatory work for the EU’s Multiannual Financial Framework (MFF) 2021-2030 aimed to integrate sustainability considerations into its financial policy framework. Hence, a regulatory framework for a more resource-efficient and sustainable economy built a financial system that supports sustainable growth to close the investment gap estimated of 180 billion EUR per year. 

Divided by four work packages, the project aimed to provide expert support to the BUMB, as well as to develop recommendations and questions on how to integrate sustainability into the EU’s MFF and how to align financial flows and investments with low-carbon and climate resilient pathways.

Furthermore, the experts contributed to the BMUB’s inputs to the High-Level Expert Group on Sustainable Finance (HLEG). The KPC’s main responsibility was to complete the work package 4 on Sustainable Finance. Generally, work package 4 analyzed the challenges and opportunities when it comes to implementing sustainable finance. Based on the HLEG’s proposals, the research report analyzed the HLEG’s recommendations and drew conclusions. Hence, it provided input for further legislative action on EU-level. The research report focused on synergies between the EU’s Sustainable Finance and FinTech agenda.

KPC’s main responsibility was to complete the work package 4 on Sustainable Finance.

Type of Services provided:

• Analysed the regulatory initiatives of the European Union, including its Action Plan on Sustainable Finance, the Taxonomy regulation, the Sustainable Finance Disclosure Regulation (and the related legal framework), the EU Consultation on a renewed sustainable finance strategy (including aspects related to digital sustainable finance), etc.
• Drafted a research report (30-35 pages) containing background information to support the BMUB as well as participants of the expert discussions. Report focused on “synergies between the EU’s Sustainable Finance and FinTech agenda”. This report was presented to and discussed with the EU Commission’s DG FISMA – Unit Sustainable Finance and FinTech.
• Drafted a research paper (5-10 pages) outlining possible solutions and recommendations. The research papers prepared expert discussions organised on each of the work packages.
• Organised expert discussions in Brussels: Presented the research paper and specific questions related to the work package to get the expert’s opinion and input.
• Provided ad-hoc support to the BMU
• Regularly delivered interim reports and drafted a final report.
• Organised side event at the Word Bank conference “Innovate4Climate” in Frankfurt.

Copyright © 2025 Bilanol/Shutterstock.  No use without permission.