Energy transition and financing: what role will banks play in 2025?
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In 2025, under the pressure of climate emergencies and European regulations, banks will be key players in the energy transition.
Far from limiting themselves to "carbon neutrality", they are redefining their models to become catalysts for change, through innovative offerings and more demanding management of their portfolios.
With outstanding green and sustainable loans growing by a spectacular 27% in one year, reaching 471 billion euros, the banking sector is asserting its determination to effectively support the ecological transformation of the economy.[1][3]
In 2024, French banks financed over €96 billion in renewable energy projects (+28% vs. 2023)[3]. Their exposure to hydrocarbons fell by 15%, reflecting a strategic shift.
This rebalancing reflects a clear determination to go beyond regulatory obligations and play a leading role in decarbonization.
Traceability and proof of impact are major challenges for 2025
While European regulatory requirements such as the SFDR and CSRD impose a new transparency framework, banks today face several major challenges:
Accurately tracking green loans and sustainable financing operations with standardized tools remains problematic.
Demonstrating regulatory compliance at the operational level requires increasing automation and reliability of ESG reporting.
Measuring and proving the real impact of financing on the energy transition is becoming an imperative to meet the growing demands of customers and regulators alike.[1][2][5]
In the face of these challenges, RegTech and FinTech solutions are playing a key role. Classification algorithms, AI and debt tracking solutions enable granular monitoring, compliant reporting and better portfolio management[4][5].
Compliance is becoming a strategic lever: only banks able to document and justify the impact of their activities enjoy a sustainable competitive advantage.
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New banking offers: impact loans and transition bonds
Banks are innovating by offering financial instruments that meet specific transition-related expectations, including:
Adjustable impact loans, whose conditions evolve according to key sustainable performance indicators (ESG KPIs).
Transition bonds, which finance projects in transition to more sustainable models, thus extend the range of green products beyond conventional bonds.[2][5]
These products illustrate the ability of banks to combine profitability, risk management and climate ambitions, while offering transparency to corporate clients, who are increasingly demanding when it comes to sustainability.
Kls: a technological partner at the heart of the financial transition
Faced with this demanding context, Kls is positioning itself as a major player to support banks in structuring, tracking and evaluating their financing linked to the energy transition.
With its Debt Tracking module, the Kls Desk platform offers :
Rigorous management,
Automated, ESG-compliant reporting,
Detailed traceability, even for complexes or syndicated financing,
Integrated, transparent impact analysis.
This approach transforms regulatory constraints into a lever for performance and differentiation for financial institutions.
Transforming regulatory constraints into performance and differentiation levers for financial institutions: that's the Kls approach.
Conclusion
In 2025, the challenge for banks will no longer be simply to deliver on the promise of "zero emissions", but rather to invent credible, measurable transition paths that are genuinely monitored. This requires product innovation, regulatory excellence, mastery of data and technological openness. Establishments capable of industrializing these levers will establish themselves as the new benchmarks of green finance.
The choice of integrated software solutions, such as those offered by Kls, transforms ESG constraints into performance levers by optimizing the management of sustainable financing.
📞 Want to take it further?
To learn more about how Kls can help you effectively manage your energy transition financing, request a demonstration of our platform or contact us for a personalised consultation.
