Europe’s Going Green May Require Fine-Tuning of Stock Indexes

The European Union should consider updating regulation on market benchmarks to facilitate investment in green projects and help meet the objectives of the climate-protection Paris Agreement, according to a report commissioned by the bloc’s regulator.

The report, prepared by an expert group including representatives of the financial industry, recommends steps that the 28-nations EU needs to take to support sustainable investment. Europe pledged to reduce its carbon-dioxide emissions by at least 40 percent by 2030 compared with 1990 levels, a goal that needs additional spending of 180 billion euros per year in energy efficiency, renewables generation and clean transportation.

While ...