At the beginning of 2022, the European Central Bank assessed the climate resilience of 104 banks in the eurozone. What implications can this study have for the European real estate sector?
Real estate is a sector that depends on large amounts of financing. The European real estate ecosystem is highly dependent on access to credit. Commercial banks are therefore major players in this market, which in turn depend on the European Central Bank (ECB) for their internal policies. Since the announcement of its first climate strategy in July 2021, the ECB has been asserting its environmental ambitions, notably by testing the resilience of eurozone banks to climate risks.
The involvement of banks in the consideration of climate risks is quite recent. In 2021, the ECB announced a « climate change action plan ». It includes the development of new indicators on green financial instruments, the carbon footprint of financial companies and their exposure to climate risks.
How can these recent ECB positions impact on the European real estate industry?
Read more: https://o-immobilierdurable.fr/ecb-assesses-climate-risks-what-impact-for-the-real-estate-sector/