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Reform Support

Supporting reforms to develop well-regulated, stable and competitive financial markets

Funding Programme
Year
  • 2022

Enhancing supervisory capacity of four NCAs in sustainable finance area

The project’s objective, implemented through the European Commission’s Technical Support Instrument, is to contribute to institutional, administrative, and growth-sustaining structural reforms in Croatia, Malta, Poland and Romania, in line with Article 3 of the Technical Support Instrument Regulation. The project contributes to increased understanding of the sustainable finance reporting and disclosure and enhance supervisory capacity of four national competent authorities (NCAs) to perform effective oversight.

Context

Under the European Green Deal, the EU has made an ambitious commitment to become the first climate-neutral continent by 2050. In this regard, the EU sustainable finance framework which refers to the process of taking due account of environmental, social and governance considerations in investment decision-making, has a key role to play in delivering on the policy objectives under the European Green Deal. This multi-country project supports NCAs to design their supervisory approach, face the challenges in enforcing complex and evolving EU disclosure requirements, enable the integration of new solutions into the existing practices and increase awareness of financial market participants. 

Support delivered

The project consisted of seven deliverables, and multiple several sub-deliverables. Main project activities included EU sustainable finance legislative mapping, analysis and recommendations; analyzing the data needs and collection methods necessary for supervision of the EU sustainability disclosure and reporting requirements; identifying good practices of NCAs in order to strengthen the supervision of EU sustainability disclosure and reporting requirements; providing each NCAs with guidance, recommendations, , tools and manual for tools which may be used in SD&R supervision; and engaging with supervised institutions and financial market participants.

Results achieved

Main project outcome is enhanced supervisory capacity of the four beneficiary NCAs (in Croatia, Malta, Poland and Romania) in the area of EU sustainable finance reporting and disclosure. The deliverables within this project will assist NCAs in strengthening their capacity to develop and implement reforms in the area of EU sustainability disclosure and reporting regime, while supporting supervisory convergence among NCAs in the implementation of this framework. Moreover, the project will contribute to the transition to a climate-neutral, climate-resilient, resource-efficient and fair economy over the longer-term period.

More about the project