The European Union’s chief executive Ursula von der Leyen said in mid September the European bloc want should commit to deeper emissions cuts over the next decade and pledged to use green bonds to finance its climate goals.
In an article written by Kate Abnett, the EU should set a target to cut its greenhouse gas emissions by at least 55% by 2030, against 1990 levels, confirming plans laid out in draft Commission documents previously reported by Reuters. The EU wants to reach net-zero emissions by 2050.
Ms. von der Leyen said 30% of the bloc’s E750 billion (about $1.17 trillion) coronavirus recovery package of grants and loans, which the EU as a whole will borrow, should be raised through green bonds. 37% of this package should be earmarked for projects to help industries decarbonize – by swapping coal for low-carbon hydrogen in industry, or installing electric car charging points.
Linking to dividend paying stocks, the European economy is the third largest economy in the world after the US and China and they are becoming green. The US and China will have to move towards green because of the size of the European community buying power. This means your investment companies need to have green policies or you will need to find alternatives.
There are more questions than answers, till the next time – to raising questions.