EU emissions pricing ‘poses mortgage risk’

CO2_Alamy_230x150
By Bill Thornhill
12 Nov 2019

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 ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial

Want to learn more? View subscription options