The rules recognize that the guarantees provided by Fannie Mae and Freddie Mac lead them to retain 100 percent of the credit risk of the mortgages they securitize, and because this guarantee is currently backed by financial support from the government, the proposed rules do not require these government-sponsored enterprises to retain additional risk.
But finance can go a long way towards helping and reinforcing this process, channelling more resources towards green investments. For these reasons, the Finance Track of the G20 has put sustainable finance among its top priorities. There is a lot that can and needs to be done.