Bank of Italy proposes unified EU green loan definition

The Bank of Italy has proposed a harmonized and operational definition for green loans within the European Union. In a recent study, the central bank highlighted that the current lack of a shared definition acts as a significant barrier to the expansion of green credit and the collection of consistent risk profile data.

The proposal suggests using the EU Taxonomy as a reference point while introducing a complementary operational path based on existing energy performance metrics. The Bank of Italy recommends that the adoption of an ‘EU green loan’ classification remain voluntary to avoid hindering market practices and that the classification be applied at the time of disbursement.

Separately, European Central Bank Executive Board member Paolo Cipollone discussed the modernization of public money and infrastructure through the digital euro. He stated that a digital euro would provide banks with access to common standards and a pan-European network, helping them develop value-added services and compete more efficiently across borders while protecting financial stability.