The European Commission has published its Sustainable Finance package, bringing together elements from the existing sustainable finance frameworks, as well as a new legislative proposal on ESG Ratings.

The package is aimed at ensuring that companies and the financial sector find the support they require with regards to their forays into sustainable finance, while encouraging the private funding of transition projects and technologies. The recommendations on transition finance provide guidance as well as practical examples on how companies and the financial sector can use tools from the framework – on a voluntary basis – to manage risks stemming from climate change and environmental degradation.

Various activities covering all six environmental objectives have been added to the EU Taxonomy and new rules were proposed for Environmental, Social and Governance rating providers which would improve market transparency for sustainable investments.

The publication was accompanied by a statement explaining the progress made regarding the EU sustainable finance agenda, framework, and specific tools. Making the sustainable finance framework easier helps towards achievement of the European Green Deal objectives.

The MFSA, which issued a circular on the developments, said it would be closely following ongoing discussions and developments at the European level.