On 10 June 2026, Environment Commissioner Jessika Roswall addressed an event marking the 30th anniversary of KfW's presence in Brussels, urging the financial sector to integrate nature into corporate accounts and investment decisions. Roswall argued that investing in the environment is essential for economic resilience, sustainable growth, and risk mitigation, not merely an act of environmental kindness.
Roswall highlighted the interconnected challenges of wars, trade conflicts, energy security, climate change, water scarcity, and biodiversity loss, stressing that a whole-of-society approach is needed. She cited European Central Bank findings that over 70% of non-financial corporations rely heavily on at least one ecosystem service, and a separate study showing more than half of global GDP is moderately or highly dependent on nature.
The Commissioner outlined EU commitments, including a proposed 35% climate and environment spending target across the future Multiannual Financial Framework, with the European Competitiveness Fund backing innovative technologies and SMEs. However, she noted that public funding alone is insufficient, pointing to an annual investment gap of €177 billion for the environment, including €38 billion for nature and biodiversity. To mobilise private capital, the Commission is advancing the Savings and Investment Union and developing nature credits to reward ecosystem service investments.
Focusing on circularity, Roswall described the upcoming Circular Economy Act as a tool to build a single market for secondary raw materials and waste, prioritising circular design, resource recovery, and reuse. She noted a separate €82 billion annual investment gap for the circular economy. Roswall praised KfW's Joint Initiative on Circular Economy (JICE), which overachieved its initial target and committed to €16 billion in circular investments, and expressed hope for its renewal.
the 35% spending target, the Circular Economy Act, nature credits, and the Savings and Investment Union. However, it offered few numerical targets beyond the cited investment gaps and JICE's commitment. The policy orientation is clearly pro-environmental investment, aiming to shift financial flows toward nature-based and circular solutions.
EU financial institutions face pressure to integrate nature-related risks and opportunities into lending and investment, potentially increasing compliance costs but also opening new markets for green finance. EU businesses, especially SMEs, may benefit from improved access to funding through the ECF and JICE, but could face higher reporting requirements. Environmental NGOs may welcome the emphasis on nature and circularity, though they might criticise the lack of binding targets beyond the MFF. EU taxpayers are indirectly affected as public funds are directed toward environmental spending, with potential long-term savings from reduced resource dependency and ecosystem degradation.