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Report to Increase Bankability of Clean Industrial Deal and Green Transition

Brussels, 17 July 2025 – The European Banking Federation has published a new report, Increasing Bankability of Transition & the Clean Industrial Deal, including suggestions to increase banks ‘participation in  financing  Europe’s green and industrial transformation.

This report examines the barriers to scaling up transition finance and provides recommendations for enhancing bankability and the efficient deployment of blended finance and other de-risking instruments to unlock further private capital and facilitate access to sustainable and transition finance.

The report, developed in close collaboration with banks and banking associations across Europe, provides actionable recommendations to evolves around a  central challenge: Lack of viable business cases rather than lack of capital. Without clear demand signals, stable policy frameworks, and effective de-risking mechanisms, many transition projects remain too risky for banks to finance them. Public authorities role in de-risking investments, aligning policy frameworks, and promoting sustainability as  mainstream is key for  improving the transition business case.

The report offers practical recommendations to improve the bankability of transition projects and ensure that public and private finance work together to deliver on the EU’s climate and competitiveness goals.

The report evolves around a  central challenge: Lack of viable business cases rather than lack of capital. Without strong demand signals, stable policy frameworks, and effective de-risking mechanisms, many sustainability investments remain too risky for banks to finance.

To unlock capital at scale, focus must be on improving the bankability of transition projects.

The report, developed in close collaboration with banks and banking associations across Europe, provides actionable recommendations to:

• Strengthen demand through long-term, stable policy incentives
• Improve the blended finance ecosystem with standardized tools and greater public risk appetite
• Support SMEs and households with micro-blended finance and a digital EU funding platform
• Simplify reporting requirements to reduce administrative burdens
• Leverage international best practices for scalability and impact

For more information:

Denisa Avermaete, Head of Sustainable Finance, D.Avermaete@ebf.eu

Jānis Priekulis, Policy Adviser – Sustainable Finance, j.priekulis@ebf.eu

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation is committed to a thriving European economy that is underpinned by a stable, secure, and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.