Bridging the Gap: The Role of Green Lending in Climate-Proofing Homes and Insurance Resilience

Economic losses from natural catastrophes are rising, while insurance coverage is disappearing. A top EU authority calls this the “biggest risk facing society.” This project will examine the impact of government green lending policies on household climate-proofing investments and insurability. By constructing property-level data that links green lending participation to home improvements and insurance outcomes, the project hopes to shed light on whether green lending programs help close the “energy efficiency gap” and enhance natural catastrophe insurance. The findings will contribute to economics literature and inform climate policy, offering insights into the effectiveness of green financing in mitigating climate risks.