News

The ECB has published the methodology of its upcoming climate risk stress test of Eurosystem banks, requiring lenders to assess their exposure to climate risks and evaluate their response to common transition scenarios.

Public interest groups have outlined their expectations for a much-anticipated US Treasury report into regulators’ handling of climate-related financial risk.

Leading banks have resisted agreeing to end financing of all new fossil fuel exploration this year, despite an IEA warning that a ban is necessary to reach net zero by 2050.

A new report from the Network for Greening the Financial System finds growing evidence that biodiversity loss could have significant economic and financial implications.

The Bank of Japan is among a growing number of central banks which are deploying interventionist policies to align bank lending with the low-carbon transition, rather than relying solely on disclosures to effect market discipline.

The Bank of England’s deputy governor has expressed optimism that tightening climate rules on banks will not lead to increased financial flows towards unregulated activities and institutions. …

In a move seemingly at odds with a climate-friendly agenda that has won praise from international experts, China’s banking regulator ordered banks to continue lending to domestic coal mines and power plants.

The chief executive of the Hong Kong Monetary Authority has laid out steps the institution is taking to support green finance and a low-carbon transition.

Leading environmental, financial and public interest groups have written to US regulators calling on them to add climate risk to their supervision of banks.

The publication is the first of its kind released by a US financial supervisor and may represent an initial step towards introducing a comprehensive climate stress-testing regime. …

The ECB has released results of an economy-wide climate stress test examining climate impacts on four million firms and 1,600 euro area banks. It finds the costs of climate change far outweigh the costs of a low-carbon transition.