Greenwashing in the sustainable finance sector in the European Union: scope of the problem and possible solutions for the green energy transition

Abstract

In recent years, we have seen how rising global temperatures and increasing inequalities progressively darken our perspective of the future. From human-made climate change to human-made unfairness, the solution to these many challenges does not seem simple. The growing interest by investors for ESG funds, such as those financing new renewable energy projects and technologies, seems to indicate a growing collective will for finding a solution to these problems. However, greenwashing, or the act of lying about one’s own ESG performance, seems to be dampening these efforts on all levels of our society. The present study will seek to analyse the problem of greenwashing in the sustainable finance sector in the European Union, both qualitatively and quantitatively, in order to establish harmonised policy proposals both for public and private market actors that offer an effective solution to this challenge and its effects on the green energy transition.