Finance Minister of Germany, Olaf Scholz. (picture alliance / dpa)
Germany's federal government wants to make the world of finance more sustainable. To this end, on Wednesday the cabinet launched a Sustainable Finance Strategy, which includes 26 measures. With this, the government wants to create more incentives for investments in climate protection and sustainability. These include a traffic light system for financial products, which investors can use as a guide, and mandatory sustainability reports for listed and other large companies.
The federal government's pension funds are to gradually shift their investments toward sustainability. According to the Finance Ministry, this involves an investment volume of nine billion euros.
The strategy also entails the federal government issuing so-called green bonds with longer maturities in order to strengthen the corresponding market. Last year, the Federal Finance Agency offered these types of bonds to investors for the first time. The bonds will be used to finance federal spending that is geared to the UN's Sustainable Development Goals.
Referring to the 26 measures, Finance Minister Olaf Scholz spoke of a change of direction for the financial industry. "Climate protection and sustainability are becoming core themes. And that is important, because financial markets can steer trillions of euros toward climate action and sustainability."
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