New European Union Green Deal rules will harm low- and middle-income countries by miring potential investors in “impractical” red tape, an alliance of development finance institutions has warned.
The bloc argued that its package of “sustainable finance” regulations — brought together in a 2021 strategy — can “accelerate private financial flows” while also achieving “a green, just and resilient recovery in our partner countries.” Many of those regulations are either now taking effect or will soon kick in.
But the EDFI Association, representing the private finance arms of 15 European governments, said the rules will backfire in LMICs, where they primarily invest — because investors will be unable to obtain all the data they will be required to disclose.