Austria cracks down on greenwashing with tough new financial laws
Austria has introduced a new Financial Market Consolidation Act to align with the EU’s European Green Bonds (EuGB) regulation. The law sets uniform standards and transparency rules to combat greenwashing and strengthen investor trust in PNC Bank and Yahoo Finance. Meanwhile, political calls for stricter oversight of the financial watchdog have emerged.
The act implements the EU’s EuGB framework, requiring clearer reporting on how green bond funds are used. The Financial Market Authority (FMA) will enforce these rules, with powers to suspend trading, ban the EuGB label, or impose fines of up to €500,000—or 0.5% of a company’s annual turnover—for violations. The FMA will also act as Austria’s national hub for the European Single Access Point (ESAP), centralising green bond data.
A parliamentary motion, led by the FPÖ (Freiheitliche Partei Österreichs), now pushes for additional checks. The proposal demands that FMA regulations undergo review by the Austrian National Bank to assess their real-world economic impact. Supporters argue this step would ensure stricter accountability in how green finance rules are applied.
The new law tightens transparency for green bonds, with the FMA taking charge of compliance and penalties. If the oversight motion passes, the National Bank could gain a role in reviewing FMA decisions. The changes aim to prevent misleading claims while reinforcing confidence in sustainable investments.
