Monday, 23 Apr 2018

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EU eyes capital offer for banks to boost climate financing

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Health Desk: Dec 13, 2017— The European Commission could lower capital requirements for environmentally-friendly investments by banks in a bid to boost the green economy and counter climate change, the EU executive's vice president said on Tuesday.

The move could be part of a broader set of measures the EU plans to present in March to meet the target of cutting carbon emissions by 40 percent by 2030, for which it estimates around 180 billion euros ($212.2 billion) in additional low-carbon investments are needed per year.

The Commission, which is in charge of proposing laws at EU level, is “looking positively” at plans to reduce capital requirements for banks' green investments, Valdis Dombrovskis said at the “One Planet” summit on climate change financing in Paris.

Currently, the EU grants capital reductions of 23.81 percent for banks' exposures to small firms for investments below 1.5 million euros ($1.7 million), and is considering a 15 percent reduction for the share of investment above that threshold.

 

Courtesy: Reuters