Covered bonds ‘zeroed’ by EU’s green Taxonomy

Green bond specialists have criticised the buildings section of the European Union’s proposed sustainable finance taxonomy as impractical as it creates unhelpful incentives that exclude most bank financing, including green senior unsecured, RMBS and covered bonds.
While they praised the draft regulation for being grounded in science, they said most of the mortgages backing green covered bonds would not qualify, that it relied on inconsistent energy performance standards, and it placed a heavy onus on individual borrowers rather than regional policy makers to make
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