Recital 1

(1)The transition to a climate-neutral, sustainable, energy- and resource-efficient, circular and fair economy is key to ensuring the long-term competitiveness of the economy of the Union and the well-being of its peoples. The Paris Agreement, adopted under the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’), was approved by the Union on 5 October 2016 ³ . Article 2(1), point (c), of the Paris Agreement sets out the objective of strengthening the global response to the threat of climate change by, among other means, making finance flows consistent with climate-resilient development. The Union’s target of climate-neutrality by 2050 is consistent with that objective.