Climate performance matters for bank credit in the euro area
10 November 2025By Petra Köhler-Ulbrich, Yuma Schuster and Nikoleta Tushteva Banks consider the climate performance of firms and buildings in their lending policies. The euro area bank lending survey shows that lower climate risks tend to improve credit conditions. Meanwhile, green investments increase loan demand from firms and households.Reducing a firm’s carbon emissions or improving the energy efficiency of a building can help businesses and households to get a loan…

