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Sustainable Financing – European Legislative Framework and Impact on the Economy

The financial sector is not immune to the risks caused by climate change and environmental degradation, and it follows trends and improves its contribution to sustainability. Strengthening economic and financial resilience to sustainability risks is one of the priorities of legislators at the global level. Sustainable financing as one possible solutions refers to the practice of providing funding to projects or businesses that promote sustainability, including social, environmental, and economic sustainability and the paper analyses its impact on economic development and increasing competitiveness. The aim of sustainable financing is to support projects that not only generate financial returns, but also have a positive impact on society and the environment. The paper is based on the analysis of empirical data and critical review of literature. Empirical data for the study are the secondary data retrieved from European Central Bank and European regulations.

sustainable financing, economic and financial resilience, circular economy, sustainable development, European Central Bank, European regulations

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