For the green transformation of the European economy to succeed, large sums of equity and debt financing will have to flow into green projects over the next few years. As the public sector cannot achieve this on its own, the European banking system and the European capital markets will have to play an important role in financing the green transition. In addition to strengthening the European equity markets (stock markets, private equity and venture capital), which are underdeveloped compared to the US markets, it is therefore particularly important to integrate the European banking system more closely with capital markets. One way of integrating the banking system more closely with capital markets is to develop the European securitization market.

The first contribution of the project will therefore be a Policy Brief that addresses the topic of securitization in the European context and highlights possible implications for green securitization and its contribution to financing the transformation. The aim is to provide comprehensive information on past developments and lessons learned with respect to the EU securitization markets. Existing solutions for European securitization markets for bank loans are to be collected and evaluated with regard to their suitability for financing the green transformation.

A policy workshop and a survey of financial market experts will follow at the beginning of 2025 on the topic of transition finance. The aim of the workshop is not only to familiarize the participating experts with the most recent academic findings, but also to explicitly learn from their experiences.

The results of the policy workshop and the survey of financial market experts, together with the insights from a lunch debate in Brussels and an academic conference on green financial intermediation at ZEW, will be compiled in the second policy brief and made available to the public. The second policy brief is planned for summer 2025.