The European Commission is to create labels so investors can identify green or low-carbon products as part of its new sustainable finance action plan.

The strategy aims to help raise the €180 billion needed for the European Union to hit its 2030 targets, including a 40% cut to greenhouse gas emissions.

Miguel Arias Cañete, Commissioner for Climate Action and Energy, said: "Global investments hold the key to fighting climate change, with trillions already invested in solutions such as renewables and energy efficiency.

“Today’s action plan will help Europe’s financial sector position itself as a leading global destination for investments in green technologies.”

Common language

The action plan includes measures to:

● establish a common language for sustainable finance, featuring terminology that will be understood by all investors;

● make corporate reporting more transparent using the Financial Stability Board's Task Force on Climate-related Financial Disclosures;

● and clarify the duty of asset managers and institutional investors to take sustainability into account in the investment process.

> Download the action plan