Green transition: Small businesses and households lead the way in the EU
To effectively finance climate transition projects with risk-mitigating solutions, the European Banking Federation is urging that a report published to this end has identified major weaknesses in the transition to green growth of small and medium-sized enterprises and households. A key idea is that in order to allow the funds to reach the end user, the EU should create a centralised digital platform for blended finance, bringing together in a single place funding options from European, national, and private sources. At the same time, the creation of a better and more guiding information tool on available funding is essential. A recent report finds that the main challenge in green financing isn't a lack of capital, but rather the absence of viable business models. Without clear demand signals, stable policy frameworks, and effective risk-mitigation tools, many transition projects are seen by banks as too risky to finance. Public...
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