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Archive » February 2023 » Esg financing: environmental goals and real estate renovation

Esg financing: environmental goals and real estate renovation

Mario Vinzia
February 2023 - n. 2
Keywords: Esg financing, real estate, transizione ecologica, sostenibilità, taxonomy, rischi Esg
Jel codes: R30, Q50, M14

In a policy driven transition process, the capital market plays a key role in supporting companies on the path to an eco-sustainable economy and this, due to the effort required, must be done by leveraging private capital alongside public resources. Debt issues linked to Esg objectives show exponential growth, but this affects only a small number of issuers, demonstrating that access to credit linked to sustainability concerns is still a matter for the few. However, the contribution of a wide range of market players is vital if the transition is to be achieved in the manner and, above all, within the timeframe required. Hence the role of the capital market and of the banking system which, at the prompting of regulators, will progressively incorporate Esg risks in the assessment of their customers’ creditworthiness, while also offering credit access opportunities to companies that invest in Esg issues. Finally, the article analyses bank financing opportunities for real estate initiatives that meet certain Esg targets.

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