A new study by the European Banking Authority has uncovered “big differences” in how banks apply the European Union’s taxonomy of green assets.

The EBA’s report into the pilot exercise find banks use a wide range of methods for estimating the greenness of their assets. Several banks’ estimates were much higher than those by the EBA, indicating that banks’ own approaches “may tend to overestimate the greenness of the exposure”, the report says.

Overall, the EBA estimates a “green asset ratio”