The European Investment Bank (EIB), a cornerstone of sustainable financing in the EU, is facing a pivotal challenge.

A new set of EU sustainable reporting rules, particularly the Green Asset Ratio (GAR), threatens to upend the institution’s green credentials.

Imagine this: the EIB, a self-proclaimed leader with over 50% of its portfolio labeled as “Climate Action,” could see only about 1% of its assets deemed “green” under these stricter regulations.

This can truly be a “reputation disaster”, as also stated by the FT.

Investors and policymakers alike are watching closely as the EIB navigates these choppy waters.