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Giving banks ‘air cover’ to finance the transition of high carbon emitters

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Wong Pei Ting

Wong Pei Ting

Published Mon, Nov 6, 2023 · 05:00 AM
    • Banks are under pressure to reduce and disclose their financed emissions, which are emissions generated from activities funded by their lending and investment portfolios.
    • Banks are under pressure to reduce and disclose their financed emissions, which are emissions generated from activities funded by their lending and investment portfolios. PHOTO: SHINTARO TAY, ST

    BANKS could soon adopt a framework on reporting potential emissions reductions of their portfolios, raising hopes that doing so will unlock much-needed capital for decarbonising high-emitting sectors.

    The Glasgow Financial Alliance for Net Zero (GFanz), a global coalition of financial institutions, is expected to finalise the new methodology by the time the United Nations Climate Change Conference (COP28) starts on Nov 30.

    Where’s the need?

    Averting disastrous global warming requires more than simply building more solar panels and wind turbines. It also necessitates that current human activities transition towards net-zero emissions.

    Transition financeBanksClimate-related financial disclosuresGreenhouse gas emissionsNet zero

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