Having said that, the ECB will also – in the not too distant future – have to review the specific role of ABS in the context of the broader issue of QE beyond 2017. As regards its achievements, the loan-level initiative set an example of swift and convincing action to show that European ABS were, broadly-speaking, less risky than feared.
Yet, a careful and timely transition will also open up opportunities, associated with the development of new renewable energy and innovative products, investment in energy saving, new infrastructure and new jobs. The transformation of the global economy towards decarbonisation cannot but have a positive net outcome. Long-term value creation is a matter of effective climate risk management and transition to a zero-carbon economy4.