Paul Tang MEP suggested that the European Banking Authority’s (EBA) report on developing a sustainable securitization framework will be approved by EU legislators.
Tang was speaking on Wednesday at Afme's European Sustainable Finance Conference in Amsterdam where he said that the proposals set out by the EBA “should be doable”. The European Commission’s report on the topic is due by the end of June.
Tang is a key figure in securitization, responsible for a number of EU reports on the market’s regulation and a negotiator on the EU’s Securitization Regulation proposals.
In its March report, the EBA said it was aiming to be “pragmatic” at this early stage in the development of sustainable securitization and argued that a dedicated framework at present would be “inappropriate”.
Instead, the EBA argued that the EU green bond standards should be adjusted to apply to securitizations at the originator level rather than at the issuer level.
“We have decided, in consultation with the Commission, to take this on board in a trial,” Tang said. “There’s the EBA report and we’re happy to take this on board in the trial and find the common ground there.”
Speaking alongside Tang, Afme’s managing director for advocacy, Pablo Portugal said the trade association was supportive of the EBA’s report and hoped that the EBA's proposals would be taken into consideration as the EU Green Bond Standard legislation is finalised.
“We look forward to how this debate will evolve,” he said.