The European Commission wants to exclude companies active in fossil fuels from financial investments considered “sustainable” in the EU, a measure that was demanded by NGOs and environmental experts.
Young climate activists are protesting with a sign “Free us from fossil fuels” during the “Fridays for Future” demonstration in Cologne on May 24, 2019, for more effective climate policy. (Photo: INA FASSBENDER / AFP)
Brussels – The Commission presented its proposals on Thursday for the revision of the European directive on sustainable finance (or SFDR), a text established in 2021 and intended to encourage savers to invest in more virtuous investments, through a system of fund classification.
NGOs and experts, including the Reclaim Finance association, the collective Our Affair to All, and climatologist Jean Jouzel, had called on Brussels at the end of September to completely review this classification, deemed too vague and far too permissive, in order to exclude at least the companies involved in the development of fossil fuels.
The Commission’s proposal seems to respond to this request, as it acknowledges that the existing classification could be misleading for savers, and proposes a new classification into three stricter categories. These categories also incorporate other criteria regarding social and environmental impact.
The Commission thus aims to better combat “greenwashing,” the use by companies of vague ecological language in their communication. (November 20, 2025)
