Investors with €6.6 Trillion Urge EU to Preserve Green Regulations

Over 200 financial institutions managing €6.6 trillion in assets have urged the EU to maintain the integrity of its sustainability laws amid plans to simplify reporting requirements that some view as overly complex. The investors, including major groups like the Institutional Investors Group on Climate Change, expressed concern that reopening foundational regulations could create legal uncertainty and deter investments crucial for achieving the European Green Deal. This appeal follows the European Commission's announcement of an Omnibus Package aimed at streamlining sustainability reporting, which has faced backlash from both investors and businesses. Supporters of the current regulations argue that they are essential for managing risks and directing capital towards a net-zero economy. Although some member states, like Germany and France, are advocating for more significant changes to reduce administrative burdens, the investor coalition emphasizes that weakening these rules would undermine long-term economic stability and climate action efforts. The mixed reactions highlight a broader debate on balancing regulatory requirements with the need for sustainable investment.