Sustainable Finance and value chains in the extended Euro-Mediterranean Region

Redirecting post-pandemic investments towards sustainable finance presents an opportunity to create new, secure, and environmentally friendly job opportunities in the Union for the Mediterranean (UfM) region. It is important to note that UfM Member States are among the most affected by climate change, yet they lack the necessary climate finance to mitigate and adapt to its impact. This funding gap is particularly pronounced in the Southern and Eastern Mediterranean States. In comparison to other parts of the world, these regions receive disproportionately low levels of public and private climate finance. 

Environmental, Social and Governance (ESG) goals, taxonomies and supply chain regulations are sustainable finance instruments that contribute to capital market transparency, thereby contributing to shifting investments from bad assets to those that are climate and biodiversity friendly and, in some cases, nature positive. By promoting investment in these sectors, they generate jobs and employment, often linked to technology transfer, helping regional economies move in the right direction. 

 Our analysis indicates that the upcoming legislative measures will exert both direct and indirect influences on employment, trade, and investment. Consequently, it is imperative for businesses and stakeholders within the region to comprehend and ready themselves, given the possible implications and regional relevance of the existing and upcoming regulatory framework. 

The Union for the Mediterranean (UfM) Secretariat, with the support of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and Climate and Company, will hold a 2-day workshop on Sustainable Investment in Madrid from 12 – 14 May focusing on Green Taxonomies and ESG Disclosure Regulations, and the possibilities for the Mediterranean region via joint action and cooperation (to address regional socioenvironmental challenges and economic development). Participants will include representatives from national governments, the private sector, consultants, financial institutions and civil society representatives.

From 9-10 July, another 2-day workshop on Sustainable Supply Chains will take place in Cairo. It will include the following topics:

• The European Green Deal and its relation to sustainable supply chains – the example of the EU Deforestation Regulation (EUDR) 
• The Carbon Border Adjustment Mechanism (CBAM) – opportunities and implications for the MED region
• The Corporate Sustainability Due Diligence Directive (CSDDD) – opportunities and implications for the MED region 
• The interface between the EU sustainable finance disclosure framework and EU supply chain-related regulations and the role of global harmonisation

Climate & Company leads the design, expert contributions and moderation of these workshops.