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illuminem summarises for you the essential news of the day. Read the full piece on Responsible Investor or enjoy below:
🗞️ Driving the news: Germany’s federal government has announced plans to relaunch its Sustainable Finance Advisory Council, a key stakeholder body to steer sustainable finance policy
• In a parallel development, the German state of North Rhine-Westphalia has issued a tender for six bond funds to be managed under strict sustainability criteria, signalling continued public sector commitment to green finance
🔭 The context: Germany established its Sustainable Finance Advisory Council in 2019 to advise on aligning the financial sector with climate and sustainability goals, but its mandate expired in 2022 amid broader EU regulatory developments
• The council’s revival comes as Germany aims to reinforce its position in sustainable finance leadership amid growing EU taxonomy implementation and global competition
• North Rhine-Westphalia, Germany’s most populous state, has already issued green bonds and is now expanding into actively managed sustainable funds for its reserves
🌍 Why it matters for the planet: Strengthening sustainable finance governance helps ensure capital flows align with climate targets and biodiversity protection
Public sector investment mandates — like NRW’s sustainable funds — set benchmarks that can influence private investors and accelerate market-wide adoption
However, challenges remain around ensuring robust criteria and avoiding greenwashing risks
⏭️ What's next: The federal finance ministry is expected to formalise the new advisory council’s composition and updated mandate by autumn 2025, with a focus on aligning German finance with EU Green Deal and Paris Agreement pathways
• North Rhine-Westphalia’s tender process is underway, with contract awards likely before year-end, potentially prompting other German states to follow suit with similar sustainable investment strategies
💬 One quote: “Public finance has a duty to lead by example in transitioning to a climate-neutral economy,” — an NRW finance ministry spokesperson
📈 One stat: Germany’s sustainable bond issuance reached approximately €35 billion in 2023, making it the second-largest issuer in the EU after France
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