Vanhanen, McGuinness talk sustainable finance

Minister of Finance Matti Vanhanen on Friday held a discussion with European Commissioner Mairead McGuinness and highlighted Finland’s views on the use of the EU’s sustainable finance classification system in the forestry and energy production sectors, said an official press release.

The European Union has established a classification system (EU taxonomy) for determining what kind of investment is environmentally sustainable.

The classification criteria are intended to facilitate sustainable investment and comparison of investments, and there will be a standard definition of sustainable investment at the EU level in the future. The classification system of sustainable finance is based on the EU’s Taxonomy Regulation.

The European Commission is currently preparing lower-level legislation (delegated acts) that will define technical criteria related to climate change for specific sectors and different economic activities. The commission plans to publish the criteria in a delegated act in April, which will be implemented from beginning of next year.

“The criteria for sectors that are important to Finland, such as forestry, bioenergy, and hydropower need to be amended. The commission must ensure that the ecological, social, and economic dimensions are taken into account in a balanced way in the sustainability of forestry. I shall do my utmost to make sure the commission understands our concerns. It is essential that the EU appreciates the significance of our forestry sector, for example, and the sustainable way in which forests are used here,” said Vanhanen.

Next week, Minister Vanhanen will discuss sustainable finance with the European Commission’s Executive Vice-President Frans Timmermans and Commissioner Jutta Urpilainen.