In a long-awaited report, the EBA offers timely recommendations for Europe’s developing sustainable securitisation market in a world transitioning to green.

Key Points:

..The report champions a pragmatic approach to facilitating the development of a sustainable securitisation market in Europe in the context of current challenges, including the limited supply of available green collateral.

..The report recommends applying the proposed EU Green Bond Standard to securitisations on an adjusted basis and favours a use of proceeds approach at the originator level.

..The report concludes that the adoption of a dedicated framework for sustainable securitisation would be premature at this juncture.