How to Green the European Auto ABS Market? A Literature Survey

Abstract

This literature survey explores the potential avenues for the design of a green auto asset-backed security (Green Auto ABS) by focusing on the European auto securitization market. In this context, we examine the entire value chain of the securitization process to understand the incentives and interests involved at various stages of the transaction. We review recent regulatory developments, feasibility concerns, and potential designs of a sustainable securitization framework. Our study suggests that a Green Auto ABS could be based on both a green use of proceeds and a green collateral-based methodology.

Keywords: Securitization, Car Loans, Sustainable Finance, Low-Emission Vehicles, Regulation

JEL Classification: G23, G28, G12