Reforming Finance: The Case of EU Financial Regulation and Landgrabbing
The European Commission has announced plans to integrate capital markets across Europe into a Capital Markets Union (CMU). This presentation focuses on three aspects of the CMU: (i) the revision of capital calibrations of banks (Capital Requirements Regulation & Directive), (ii) a proposal on simple, transparent and standardised (STS) securitisation, and (iii) a review of the directive regulating EU (re)insurance (Solvency II).
The case study of landgrabbing is used to illustrate the challenge of reforming financial markets to address social and environmental problems. A brief explanation is given of the role of European finance in contributing to landgrabbing outside the EU and how ESG matters (including landgrabbing) generate financial risk. Finally, concrete policy recommendations are presented to address environmental and social risk in the three aspects of the CMU outlined above.
The presentation is based upon a joint research project undertaken with Prof. Andrew Johnston, Dr. Jay Cullen and Dr. Ting Xu of the University of Sheffield School of Law.