The Bank of England needs to act on — not just stress-test — the risks posed by climate change

Our economy, environment and society are already stressed to their limits by Covid-19 and the climate emergency — now is the time for action, argues Lukasz Krebel in BusinessGreen:

“Disappointingly, the Bank’s climate stress test will be a purely ​‘exploratory’ exercise, meaning that the Bank won’t bring in regulatory measures or more stringent capital requirements for the institutions that are found to be particularly exposed to climate risks. For example, this could be banks that give a substantial proportion of loans to fossil fuel companies. These companies will end up losing value as we transition to a low-carbon economy, exposing the banks to financial loss.”

Read the full article [paywall]