ROMA (ITALPRESS) – Despite the spread of credit products in support of energy efficient construction and real estate, the EU still lacks a broadly shared green loan definition. This is what the Bank of Italy highlights in a study contained in the publication “Prestiti Verdi: a proposal for a simplified EU definition”.
Starting from the work of the European Banking Authority (EBA) on green loans and green loans, the document argues that the lack of a harmonised and operational definition of green loan represents a significant obstacle to the expansion of green credit and the collection of consistent data on its risk profile.
The Bank’s document proposes a harmonised definition based on the recommendations of the EBA and the prevailing market practices, it maintains the EU’s Taxonomy as a reference point, while introducing a complementary and non-substitutional operating path – based on energy performance metrics already widely used in credit delivery processes.
With regard to the policy option considered more suitable for the introduction of the proposed definition, both solutions suggested by the EBA (i.e. a recommendation on a conceptual framework for green loans or a specific legislative initiative) could be supported. In both cases, however, it would be appropriate that: the adoption of the classification of “green loans EU” remained on a voluntary basis, in order not to hinder market practices considered more suitable by credit institutions to their business models; the inclusion of the loan in the scope of green loans took place at the time of delivery, with a revision planned only in the presence of a reasonable certainty of the impossibility to respect the commitment assumed. Further criteria may be suggested at a later stage, taking into account, for example, the development of a comprehensive portfolio reference framework. The Bank of Italy confirms its commitment to maintain an open and constructive dialogue with all the competent authorities and stakeholders, remaining ready to contribute to the current political debate.
– Photo Ipa Agency –
(ITALPRESS).
