Legal & Regulatory News

European Banking Federation releases proposals for an EU framework for financing the green transition

On 17 February 2023, the European Banking Federation (EBF) published its proposals on a transition finance framework at an EU level (the Framework).

The EBF notes that common transition plan structures may help to encourage the development of new financial products by banks and may enable and incentivise the financing of companies that require capital to improve the environmental performance of their activities.

The EBF suggests that the European Commission should consider the following:

• at an activity level, defining which transition pathways should be used for each economic activity per industrial sector with possible national specificities where relevant; and
• at entity level, standardising corporate transition plans (following the structure proposed by the European Financial Reporting Advisory Group) to provide a common definition of transition plans, pathways and roadmaps.

Click here to view the press release.

Click here to view the Framework.