Sustainable finance is the provision of finance to investments taking into account environmental, social and governance considerations. The recent growth in sustainable finance is seen by many experts as a response by governments seeking to comply with and reach the targets set by the Paris Agreement (a legally binding, global agreement on climate change as agreed in Paris on 12 December 2015). Some other reasons attributed to the growth in sustainable finance (from both an Irish and EU perspective) include:
- EU targets: the EU target of reducing EU-wide CO2 emissions by 40% by 2030.
- Potential investments in the EU: according to the EU High-Level Expert Group on Sustainable Finance, it is estimated that €11.2 trillion of investments in EU climate control measures will be required between 2021 and 2030 in order to meet the above EU target.