Leaseurope released a new paper on the role of leasing in transition finance

In the short- to medium-term, transition finance is expected to be far more significant than green finance in Europe, and the European leasing industry is likely to lead providing transition finance to SMEs across Europe.

Leaseurope believes that all transition finance, including both finance and operating leases and all finance for SMEs as well as larger companies, should be recognised in reporting of sustainable finance required from banks and other financial companies.

This should include :

> The EU definition of green loans that is being developed following the recent Opinion of the European Banking Authority

> Future sector-specific European Sustainability Reporting Standards and the International Financial Reporting Sustainability Standards

This is essential to ensure banks and other providers are able to continue to support European SMEs, as well as larger businesses, on their journeys to sustainability. Our new paper sets out our high-level proposal for how this could be achieved for green transition investments using leasing.