The EU’s green rules will do too little to tackle climate change
Relying on investors to save the planet using a “taxonomy” has limits
INVESTORS’ ENTHUSIASM for financing the green transition is growing—just look at the surge of interest in the electric-car industry. Tesla’s shares rose by 50% in 2021; those of CATL, China’s battery giant, rose by 68%. Yet if you look more closely, you will find huge problems. If the world is to reach net-zero emissions by 2050, investment will need to more than double, to $5trn a year. And fund management is rife with “green-washing”. Sustainability-rating schemes have proliferated but are wildly inconsistent, while many funds mislead investors about their green credentials.
This article appeared in the Leaders section of the print edition under the headline “The meaning of green”
From the January 8th 2022 edition
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