Green Mortgages, EU Taxonomy and Environment Risk Weigthed Assets: A Key Link for the Transition
| Autor: | Lorenzo Esposito, Giuseppe Mastromatteo, Andrea Molocchi, Paola Brambilla, Maria Carvalho, Pierpaolo Girardi, Benedetta Marmiroli, Giulio Mela |
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| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
green mortgage
Environmental effects of industries and plants Renewable Energy Sustainability and the Environment Geography Planning and Development prudential regulation EU Taxonomy TJ807-830 sustainable finance Settore SECS-P/02 - POLITICA ECONOMICA Management Monitoring Policy and Law TD194-195 Renewable energy sources Environmental sciences finanza sostenibile climate change GE1-350 Tassonomia UE |
| Zdroj: | Sustainability; Volume 14; Issue 3; Pages: 1633 Sustainability, Vol 14, Iss 1633, p 1633 (2022) |
| Popis: | The need for a quick and radical green transition gives a key role to the financial system as the main source to fund the change. This debate also involves the development of banking regulation tools able to serve the transition. Building on previous works, we propose a method to weight banks’ assets that combines conventional financial risks and environmental risks to calculate prudential capital requirements, and we apply it to the EU Taxonomy’s technical screening criteria to build an environmental risk indicator based on the buildings’ energy consumptions. We show how to calculate the tool endogenously for the taxonomy sections related to buildings (new construction, purchase of building, renovation), thus proving its immediate enforceability, using data from the Lombardy’s housing stocks. Finally, we conduct a stress test for the Italian banking system showing that our proposal would be an effective incentive for the banks to fund the green transition of the construction sector. Disclaimer: The views expressed are those of the authors and do not involve the responsibility of the Bank of Italy or RSE. |
| Databáze: | OpenAIRE |
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