Template-Type: ReDIF-Paper 1.0
Author-Name: Lorenzo Esposito
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Esposito
Author-Email: lorenzo.esposito@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica - Banca d’Italia, sede di Milano
Author-Name: Ettore Giuseppe Gatti
Author-X-Name-First: Ettore Giuseppe
Author-X-Name-Last: Gatti
Author-Email: ettore.pinogatti@gmail.com
Author-Workplace-Name: DISCE, Università Cattolica
Author-Name: Giuseppe Mastromatteo
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Mastromatteo
Author-Email: giuseppe.mastromatteo@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Title: Sustainable finance, the good, the bad and the ugly: a critical assessment of the EU institutional framework for the green transition 
Abstract: The transition to a green economy is arguably the most important economic transformation of the next decades. To be completed it requires the mobilization of astounding resources, a flow of technological innovation and a whole series of new rules going from technical standards to financial regulation. Given the resources it needs, the transition, to be credible, requires a full engagement of the financial system. On this regard we analyze the policy set-up of Europe, the most advanced area on the issue. We identify a three-layer functioning of the EU project for transition. The first one (“green products”) is fully compatible with the present financial system. A second layer entails changes in the business model and organization of financial operators but it can be phased in with minor overhauls. Finally, there is a third layer, largely incompatible with the present financial system, yet crucial to achieve transition. We show that, according to the same EU analysis, the transition needs a total change in the financial landscape and therefore it is, rebus sic stantibus, intrinsically unfeasible. We suggest ways to escape the dilemma that connects financial stability and green economy.
Length: 38
Creation-Date: 2019-02
File-URL: http://dipartimenti.unicatt.it/politica-economica-DIPE0004.pdf
File-Format: Application/pdf
File-Function: First version, 2019
Number: dipe0004
Classification-JEL: G28, Q54
Keywords: climate change, sustainable finance, EU
Handle: RePEc:ctc:serie5:dipe0004