The objective of this opinion is to put forward the concerns and priorities of local and regional authorities and of the CoR regarding the Commission's action plan on sustainable finance and the legislative proposals seeking to implement it. Finance will need to be at the heart of the solution if the EU is to achieve its ambitious objectives with regards to sustainable development - a key priority for local and regional authorities, many of whose competences and roles are concerned. The development of solutions to push the financial markets and their participants in the direction of sustainable development can have a tremendous impact and it is thus essential for the CoR to make the voice of cities and regions heard.
In addition, while private capital and investment are the main targets of this Action Plan, public capital also plays a major role in encouraging a more sustainable development, in a large part thanks to its ability to invest for the very long term and to act as a catalyst. Local and regional authorities are responsible for more than half of public investment in the EU, and much more in some Member States such as Belgium, Spain, or Germany, and are thus directly concerned . Cities and regions have broad competences and financial responsibilities in the fields of infrastructure, transport and housing, which are crucial to the establishment of a greener, more sustainable economy. In addition, regional and local authorities are significant issuers of green bonds and are thus directly concerned by some of the measures of this Action Plan.