(Bloomberg) -- France will only let funds use the national ESG label if they blacklist fossil-fuel companies that are expanding production.

Finance Minister Bruno Le Maire said excluding oil and gas companies with expansion plans is “essential” to fighting climate change, according to a statement on Tuesday. The change will make it easier for green investors to know what they’re really getting, he said.

In France, funds claiming to target environmental or social metrics can market themselves using a voluntary so-called SRI label. Since its introduction in 2016, the number of SRI funds has grown to over 1,000 with assets of more than $800 billion, according to government data.

France joins Belgium in taking a tougher stance on fossil fuel investments. The Belgian Central Labeling Agency said earlier this year that companies held in ESG funds can’t be involved in exploration or development of new fields. 

The tougher criteria, which apply from March next year, come as Europe reviews its landmark ESG investing rulebook. The European Commission, which has set a Dec. 15 deadline for a consultation into the Sustainable Finance Disclosure Requirement, has signaled that a major overhaul may be needed to step up the fight against greenwashing.

The French government’s decision to crack down on fossil-fuel companies follows a two-year review of the SRI label criteria. The decision faced opposition from the financial industry, including Amundi SA, Europe’s biggest asset manager. 

Nonprofit organizations, meanwhile, have welcomed the French requirement.

The government is sending a signal to the fossil fuel industry that “their expansion activities should be stopped,” said Lara Cuvelier, a sustainable investments campaigner with Reclaim Finance.

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