The so-called Russian shadow fleet primarily serves to evade sanctions on oil exports and thereby finance its war of aggression against Ukraine. At the same time, it is increasingly emerging as a security risk with defence implications for Europe. Vessels associated with the shadow fleet are being linked with growing frequency to acts of espionage and sabotage, thereby posing a threat to German and European security as well as to the maritime environment. In close coordination with its partners, the German government should pursue a systematic approach to countering the shadow fleet effectively. The overarching objectives are to preserve the integrity of sanctions regimes, safeguard maritime security, and contain defence-related threats.
• Financial markets still provide financing on a large scale for investments in environmentally harmful activities, while projects conducive to the green transformation are often not funded.
• Sustainable finance policies, such as new reporting requirements and standards for sus¬tain¬able financial instruments, have so far mostly focused on creating transparency. However, transparency alone is insufficient to turn the financial sector from a driver of en¬viron¬mental crises into a lever for the green transformation.
• Many countries of the Global South face special challenges, including high interest rates, currency depreciation and limited oppor¬¬tu¬nities to shape global policies (e.g. banking regulations and standards for sus-tainable finan¬cial instruments) in their interests.
• Aligning financial markets with sustainability objectives requires a comprehensive policy mix comprising policies that change incen-tives. These policies can include credit guidance instruments such as credit targets, green refinancing schemes and differentiated capital requirements, and tax policies such as differentiated capital gains taxes for green and non-green assets.
• International forums, such as the Network for Greening the Financial System (NGFS) and
the Sustainable Banking and Finance Network (SBFN), remain valuable for mutual learning and for addressing cross-border effects of finan¬cial regulations.
• Policies to mobilise private resources should not be considered as a substitute for public investments or public steering, which are both crucial for the green transformation.