German Regulator Shelves ESG Rules Amid Russia Energy Fears

Germany’s financial regulator has shelved planned rules for classifying investment funds as sustainable, after Russia’s invasion of Ukraine sent shockwaves through global energy markets.

“Against the backdrop of the dynamic situation in regulation, energy and geopolitics, we have decided to put our planned directive for sustainable investment funds on hold,” BaFin President Mark Branson said Tuesday at a press conference in Frankfurt. “The environment isn’t stable enough for permanent regulation.”

Bafin’s announcement indicates just how much Russia’s war and the associated energy crunch has unsettled the investment industry’s shift toward green energy. Bafin’s move comes as governments seek to remove ...