The double-edged sword effect of climate change regulations on bank lending: evidence from France’s law on energy transition for green growth
Abstract
Purpose This paper aims to assess the impact of the enforcement of Article 173 of France’s Law n.992/2015 (on Energy Transition for Green Growth) and of its environmental disclosure requirements on bank lending behaviour. Design/methodology/approach The authors conduct loan-level triple-difference estimates by using confidential loan-level data from the credit registry of the European Central Bank (AnaCredit) and detailed company-level greenhouse gas emissions. Findings The authors show that while Article 173 has pushed French banks to reduce overall brown lending, these banks have increased lending to domestic polluting firms to compensate for foreign lenders pulling out of the French market. Originality/value The study’s results call for higher coordination among European regulators on the implementation of climate regulations.
Fields of Study & Subjects
Sustainable Finance and Green Bonds
Banking stability
regulation
efficiency
Corporate Social Responsibility Reporting
Publication details
- Journal / source
- Journal of Financial Regulation and Compliance
- Volume
- 34
- Issue
- 4
- Pages
- 626–642
- Publication date
- 13 February 2026
- Language
- EN