Euro zone banks are offering loans on more favourable terms to companies with a better climate performance and may be punishing polluters, according to a blog post published by the European Central Bank on Monday. A net 20% of banks surveyed said that they expect to ease credit standards for green firms and 13% plan to do the same for companies in transition. Meanwhile a net 35% said that climate risk would result in tighter lending conditions for high-emitting companies.
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Euro zone banks tilting loan pricing towards greener firms, ECB blog says
"Banks offer a 'climate discount' in their risk assessment to green firms and those in transition," the blog said, analysing responses in the ECB's quarterly Bank Lending Survey.
