Legal & Regulatory News

European Commission issue call for advice on green loans and mortgages

On 22 November 2022, the European Commission (the Commission) issued a request for advice from the European Banking Authority (EBA) on the European green loan and mortgages market in order for the Commission to consider measures to encourage the development of these markets.

The scope of the request for advice covers various green loans originated by credit institutions in the EU, including loans with environmental sustainability features, green mortgages and, where applicable, loans based on the EU Taxonomy and its six environmental objectives.

The request for advice also covers the following areas:-

• overview of current market practices, with a specific emphasis on the origination processes;
• observations on the prevalence of green loans in banking markets;
• the impact of other ongoing regulatory initiatives;
• the merits of an EU definition of green loans and mortgages; and
• measures to encourage the uptake or access to green finance by retail and SME borrowers.

The Commission have asked that the advice be delivered by the EBA by 29 December 2023.

Click here to view the European Commission's letter to the EBA

Click here to view the call for advice