Change Finance and Corporate Europe Observatory outline the dangers of allowing a voluntary US style approach to green finance in Europe.
On the same day as the EU’s own Ombudswoman released a report confirming the EU was in conflict when it awarded a green finance contract to BlackRock, a new report was released highlighting the many ways this “BlackRock Model” is flawed.
The world’s largest asset manager BlackRock is notorious for its investments in fossil fuels and deforestation. Still, the European Commission ignored conflicts of interest when it awarded the company a bid to prepare the reshaping of EU banking rules to meet the climate challenge. On top of this, BlackRock is a major shareholder in companies that have the most at stake: big European banks.
BlackRock is one of the leading proponents of soft regulation on climate change. Along with dozens of other big financial institutions, it has fought key elements of the EU’s agenda on sustainable finance. Still, it is allowed to do consultancy work that will lay the ground for the EU institutions’ green banking regulations.
The Commission ignored all conflicts of interest rules when awarding BlackRock the contract. It is crucial that action is taken to avoid the derailing of an important initiative: redirecting capital flows from investments that lead to more and deeper climate change to sustainable investments.
Read the full report here: https://shr.link/report