The Spanish competition authority, CNMC, has released a report on a draft decree intended to promote and support ethical finance entities. This initiative, requested by the Ministry of Labor and Social Economy, aims to establish a framework for financing operations aligned with environmental and social objectives.

Among the proposed measures are public subsidies and promotional actions to enhance the visibility and activity of these entities. However, the CNMC warns that these subsidies could be classified as state aid and must comply with applicable European regulations.

In its analysis, the CNMC suggests several improvements to the draft decree. It emphasizes the need for clearer definitions of what constitutes ethical finance entities and the justification of the requirements imposed. Insufficient definitions could lead to legal uncertainty and unjustified restrictions on access to support measures.

Additionally, the CNMC recommends establishing clear indicators, verifiable parameters, and accreditation procedures to objectively assess compliance with the requirements by beneficiary entities and projects. It also calls for the inclusion of criteria to evaluate the social and environmental impact of projects seeking these supports.