Consumer credit providers have a key role to play in supporting the green transition in Europe, helping consumers achieve their sustainability ambitions.
Greener consumers for a more sustainable Europe
The European Green Deal is the European Commission’s plan to make the EU's economy sustainable. The Green Deal’s aim of reducing the EU’s carbon dioxide emissions by 55% by 2030, has brought with it a number of equally ambitious proposals. The Sustainable Finance Action Plan aims to incorporate environmental, social, and governance criteria into the European financial system to promote more eco-friendly investments and business models.
At the household level, moving to greener options often involves making investments – spending more now, to save money and be more environmentally friendly in the future. Consumer credit solutions have a key role to play in supporting the green transition in Europe, helping consumers to contribute to the goals of the European Commission’s European Green Deal through their durable consumption choices, particularly with helping to fund greener asset purchases like low-emission cars, photovoltaic panels, or low energy consumption heating.
Supporting the take-up of green products and services
Consumer credit has a key role to play in financing green assets like low-emissions cars, photovoltaic panels, or low energy consumption heating, and it is important that specific regulatory initiatives like the Sustainable Finance Action Plan support this.
Measurement and benchmarks
Our industry fits into various definitions and benchmarks like the EU green taxonomy, Sustainable Development Goals (SDGs), and financial reporting requirements, and consumer credit should be adequately recognised as a funding source for sustainable investments.
Sustainable funding initiatives like green bonds and green securitisation incentives could potentially have a significant impact on the consumer credit sector.