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Saturday, January 11, 2025

Banks Misaligned with Local weather Targets – 2GreenEnergy.com


Right here’s one other in a sequence of articles from the Rocky Mountain Institute (RMI): 90 % of Euro Space Banks Are Out of Step with Paris Targets. How Can They Get on Monitor? An excerpt:

(An evaluation) of 95 Euro space banks discovered that roughly 90 p.c are misaligned with the objectives of the Paris Settlement. Misalignment with local weather pledges can expose monetary establishments to vital threat as coverage and market circumstances more and more replicate local weather realities. For instance, when carbon-intensive debtors face carbon pricing, regulatory restrictions, or shifting shopper preferences, they will change into much less aggressive towards friends and extra vulnerable to default on loans.

All of us want banks would get on board with local weather change mitigation and, at a minimal, refuse to lend trillions of {dollars} for fossil gas initiatives around the globe.  In any case, this might have the impact of serving to creating international locations “leapfrog” over coal and pure fuel energy technology crops and transfer instantly into nuclear and renewables.

Is that this “misalignment” and its accompanying enterprise threat going to be an element?  Maybe we should always maintain out hope.  It will be much better if taking motion have been achieved just because it’s the fitting factor to do, however that doesn’t appear to be occurring.

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