It's not easy being green- the challenge of defining green investments
As the trend towards sustainable invetsing grows, critics are questioning whether sustainable investment products are really delivering sustainable outcomes or engaging in "greenwashing". To address these concerns, the European Union has embarked on an ambitious project to define green investments, known as the EU Taxonomy. However, the project has become fraught as policymakers fight about what "green" means. In this lecture, we will elaborate on the EU Taxonomy as a tool to define green investments and how it compares to other standards, such as the Paris-Aligned Benchmarks and the IIGCC's Net Zero Investment Framework to demonstrate the challenges in having a single definition of green and how investors can navigate these different standards to align with their own preferences.