The European Securities and Markets Authority has said that it is considering changes to forthcoming new rules on the naming of sustainable investment funds.

The move comes after some investors have said that the new rules could hinder companies from accessing funding to decarbonise. The new rules come into force on November 21 and mean that funds labelled as green, environmental or impact will not be allowed to invest in oil and gas, coal and some electricity companies. There are also concerns that the new rules will come into conflict with EU rules relating to green bonds and the Sustainable Finance Disclosure Regulation.

ESMA has said, “ESMA is considering certain specific issues related to the practical application of the guidelines on funds’ names using ESG or sustainability related terms, including whether there is a need to provide further guidance.”

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