Italy: Green ABS: A New Opportunity

Various private sector and public sector initiative in Europe are facilitating a green transition in the capital markets. This includes development of a EU Securitization Framework that could mobilize capital for green projects and increase demand for green mortgages. There are currently three main types of Green Securitizations in the European market, including: “Green Securitizations Backed by Portfolios of Green Assets”, “Green Use of Proceeds Securitizations” and “Green Synthetic Securitizations”. Additional market conventions to facilitate funding of green projects are also underway including the work of the European Commission Technical Expert Group on Sustainable Finance towards developing an EU Taxonomy on Sustainable Activities, EU Green Bond Standards and development of the Sustainable Europe Investment Plan.