• European regulators strike a pact to coordinate sustainable finance policies and enforcement.
• Deal aims to improve supervision by integrating environmental data into financial oversight.
• Collaboration expected to reduce duplication and strengthen EU climate and biodiversity goals.

The European Securities and Markets Authority (ESMA) and the European Environment Agency have signed a memorandum of understanding designed to tighten cooperation in the rapidly expanding field of sustainable finance.

The agreement focuses on bringing environmental data more directly into the European Union’s sustainable finance framework, including how it is monitored and enforced. Under the terms, the two agencies will share information and technical expertise while supporting joint training and capacity-building initiatives.

They also plan to coordinate national-level regulators and environmental authorities, an effort aimed at smoothing cross-border oversight in a fragmented policy landscape.

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Both institutions said the partnership will help avoid overlap in their work and boost efficiency. In a joint statement, they noted that closer collaboration will “ultimately contribute to addressing the significant challenges related to biodiversity, climate change and pollution.”

The move comes as Europe looks to position itself as a leader in sustainable finance, with regulators facing mounting pressure from investors and governments to ensure that environmental claims tied to financial products are both credible and enforceable.

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