Macro Focus - The green taxonomy: a driver for the transition
The green taxonomy: a driver for the transition
  • New EU disclosure rules will reduce greenwashing and speed up the green transition
  • Modest effects on rates in the short term, but large impact in the long run
  • Green trends boosted in the Nordics; direct effects in the Baltics will be smaller

The EU is launching important regulations for greening the financial markets. The green taxonomy will define green investments and increase companies’ environmental disclosure. The climate related parts of the taxonomy are to be finalized soon. Among financial market participants, the disclosure regulation will foster transparency on ESG issues.

Though the regulations will inevitably have their shortcomings, they will reduce greenwashing and support funding to green projects. In the short term, we expect the regulations to have modest effects on interest rates, but their effects on stock prices and long-term funding costs could be considerable.

Overall, the Nordic economies are in a good position to gain from green investment, but some sectors will lose out. In the Baltics, with fewer large companies, the effects will be smaller in the near term.

PDF-Document Read the full analysis here

For more information about this report, please contact:

Greta Ilekytė, greta.ilekte@swedbank.lt (Lithuania)

Maija Kaartinen, maija.kaartinen@swedbank.se (Sweden)

Sonja Liukkonen, sonja.liukkonen@swedbank.fi (Finland)

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