THE EFFECT OF CLIMATE CHANGE ON LENDING POLICIES

Session: Standardizing climate definitions and embedding risk assessments into lending to ensure transparent, comparable, and compliant credit decisions

• Establishing consistent climate definitions and embedding climate risk assessments into lending policies to guide transparent, comparable, and compliant credit decisions in Europe
• Applying exclusions for high-carbon sectors while supporting credible transition pathways, and balancing financial stability with the need for decarbonisation.
• Shifting funding towards climate-focused projects to reduce long-term financial and environmental risks and accelerate Europe’s Green Deal objectives
• Applying proportionality in lending policies to ensure SMEs and smaller borrowers maintain access to finance