Sustainable finance as a competitive advantage: Priorities for a new political reality
For the first episode of Sustainability Bridges in 2025, special guest Rachel Owens, Director of Climate Finance at the European Climate Foundation, joins Aleksandra Palinska, Eurosif’s Executive Director, to discuss the importance of sustainable investments for growth and competitiveness and the changing political landscape in the EU and beyond. Drawing on numerous real-world examples, both Rachel and Aleksandra emphasise that the case for sustainable finance being a competitive advantage for business and beneficial for economic growth and competitiveness is just as strong as it is for tackling climate change and protecting people and planet. The two are ultimately intertwined as sustainability disclosures and high-quality data are a necessity for investors to make informed investment decisions and better manage risks in their portfolios. At a macroeconomic level, consideration and integration of sustainability risks is key for protecting against environmental, political and financial crises that are likely to increase in frequency due to climate change and a more isolationist political reality. During the episode, Rachel also shares her thoughts on the new European Commission’s Omnibus initiative, that will propose to reopen a number of key sustainable finance regulations. Rachel’s view is that this will create unnecessary confusion in the market, while also negatively impacting the resilience of the European economy to future shocks. Reopening these files would also risk eroding the EU’s global leadership role on this agenda, making the bloc more susceptible and vulnerable to the policy decisions of other jurisdictions, which is particularly problematic in the current political context.