‘Green Finance’ – A Sham Label for a Clear Conscience?

The financial industry has long embraced the concept of sustainability. There are sustainable bonds, green financing options, and even banks exclusively offering green financial products. However, doubts about sustainability persist. How are the criteria established? What happens if evaluation standards change? In the latest episode of the ZEW podcast, Karolin Kirschenmann, deputy head of ZEW’s “Pensions and Sustainable Financial Markets” Unit, addresses whether green finance is genuinely sustainable or merely a sham label. Alongside podcast host Bastian Thüne, she discusses the pros and cons of green labels in the financial sector, the risk of greenwashing, and the actual benefits of green finance.