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Politics, not climate, to drive sustainable finance trends in 2025


//business-finance.news-articles.net/content/202 .. to-drive-sustainable-finance-trends-in-2025.html
Published in Business and Finance on by Reuters   Print publication without navigation

A turbulent year for sustainable finance is set to continue in 2025 as the return of Donald Trump as U.S. president heralds more regional divergence on everything from fund flows to legal cases and market regulations.

The article from Reuters, published on January 10, 2025, discusses how political dynamics rather than climate concerns are increasingly shaping sustainable finance trends. It highlights that despite the global push towards sustainability, political decisions, especially in major economies like the U.S. and EU, are significantly influencing the direction and implementation of sustainable finance. Key points include the U.S. administration's policies affecting green investments, the EU's regulatory framework like the Sustainable Finance Disclosure Regulation (SFDR), and how these political environments are creating both opportunities and challenges for investors. The article notes a trend where political stability and policy support are becoming critical factors for the growth of sustainable finance, potentially overshadowing the urgency of climate action. Additionally, it mentions the rise of greenwashing concerns, where political motivations might lead to less stringent environmental criteria, thus affecting the credibility of sustainable investments.

Read the Full Reuters Article at:
[ https://www.reuters.com/sustainability/politics-not-climate-drive-sustainable-finance-trends-2025-2025-01-10/ ]

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