European banks less likely to lend to green firms, says ECB paper

Public guarantee loans can help lower-carbon firms access bank credit, research finds

Energy Management Special

Firms with lower carbon emissions than their peers face greater difficulty in securing bank financing, a working paper published by the European Central Bank finds.

This is because European banks see greener firms as riskier than their counterparts that generate more pollution, the paper says. In Greening the economy: how public-guaranteed loans influence firm-level resource allocation, Bruno Buchetti, Ixart Miquel-Flores, Salvatore Perdichizzi and Alessio Reghezza argue policy should counteract

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