To achieve Europe’s climate goals of climate neutrality in 2050 and a net emissions reduction of 55% by 2030, action must be taken especially where the emissions reduction potential is greatest. For the green transition to be both socially acceptable and to develop the European industry needed to make it happen, the company’s realistic and ambitious strategic roadmap should be backed by a feasible investment program co-financed by the financial sector. And one of the key aspects of the strategic framework should be a significant reduction in net emissions. This approach then becomes understandable to financial institutions, can significantly reduce the company’s issuance costs and reduce the bank’s valuation of financing risks.

How do financial institutions price risks in high-emission companies with significant reduction potential? Do they use special conventions when financing them? Do companies implementing ambitious emission reduction strategies become more credible to financing companies? Do supervisory requirements over banks, of the Polish KNF and the European EBA, allow taking into account viable emissions reduction measures when valuing credit risks for such companies?