The EU has been preparing policies and legislation for the green transition. Examples include policies and legislation aimed at achieving carbon neutrality and transitioning toward a circular economy. As the green transition requires significant funding, financial policies have been promoted simultaneously to direct funding and investment flows toward sustainable economic activities. Typical examples are 1) laws such as taxonomy regulations to classify economic activities that contribute to climate and environmental goals, and 2) laws to mandate sustainability disclosure and reporting to provide transparency for both companies and investors. In addition, legislation to promote the transparency and integrity of ESG evaluation company activities is being discussed. Moreover, transition financing has also been provided to support not only those companies with good sustainability practices, but also those with various starting points that have clear sustainability goals. Therefore, the EU is taking measures to promote the flow of funding and investments into sustainable economic activities to achieve climate and environmental goals. Such measures are also essential for export-driven countries such as Korea. Because ESG management is not an option but a requirement, a comprehensive financial framework and foundation for green transition should be provided.