EU emissions pricing ‘poses mortgage risk’
The European Union’s plan to decarbonise building stock by taxing fossil fuels is likely to lower borrowers’ disposable income and their ability to service loans, which may increase delinquencies. However, it will drive more green covered bond and RMBS issuance, said Moody’s.
A carbon pricing mechanism is a leading policy contender for EU member states to incentivise the transformation of brown buildings with high carbon emissions into green buildings that are energy efficient and have low emissions.Higher effective carbon taxes levied on polluting fuel types will incentivise consumers to reduce carbon ...
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