27/04/2020

Sustainable recovery from the Covid-19 pandemic requires the right tools

Statement Released by the EU Technical Expert Group on Sustainable Finance on 27 April 2020

The EU Technical Expert Group on Sustainable Finance (TEG) was established in 2018 to advise the European Commission on the implementation of the Action Plan on Financing Sustainable Growth. The Luxembourg Stock Exchange is an active member of the TEG, where it contributes its expertise and market knowledge, and helps develop new tools to finance a sustainable future.

As Governments across Europe and beyond are eager to rescue their economies from the massive impact of the Covid-19 pandemic, the TEG stresses that the right tools will be required to ensure a resilient, sustainable and fair recovery from the current crisis.

On 27 April 2020, the expert group released a statement outlining how the Sustainable Taxonomy, EU Green Bond Standard, and Paris-Aligned and Climate Transition Benchmarks can guide public and private sector plans for recovery from the Covid-19 pandemic. These tools encourage substantial contributions to environmental and social objectives, and the expert group argues that climate goals are critical to reducing the risk of other catastrophic crises in the future. According to the TEG, resilience in our social and economic systems is what provides the best protection in moments of crisis, and this is what public and private sectors should focus on building when crafting their current recovery plans.

Download and explore the full TEG statement in English and French here:
About the TEG
The European Commission set up a Technical expert group on sustainable finance (TEG) to assist it in developing, in line with the Commission's legislative proposals of May 2018:
  • An EU classification system – the so-called EU taxonomy – to determine whether an economic activity is environmentally sustainable
  • An EU Green Bond Standard;
  • Methodologies for EU climate benchmarks and disclosures for benchmarks
  • Guidance to improve corporate disclosure of climate-related information