Ciff Calls on Leading Central Banks to Take Climate Action
As part of CIFF’s commitment to address the climate emergency, our Chair Sir Christopher Hohn has written to the heads of the UK and EU central banks and to the US Treasury Secretary
We are faced with a climate emergency, which is the single greatest threat to the future of today’s children. If we don’t secure commitments to clear action from Central Banks, we are confronting the closing of the window to limit warming to 1.5 degrees. There is no more time – banks and regulators must act now.
In these letters, Sir Christopher Hohn makes clear that:
- Banks have a critical role to play in decarbonising economies
- Banks have huge exposure to fossil fuel producers and high emitters
- They do not systematically collect or disclose emissions data from borrowers
- Loans to high carbon emitters have higher risk
- These loans should have higher capital risk weightings imposed by central banks
- This would force loan repricing and reduction of exposure
- Banks should have 5-year targets for reducing loan book emissions
Since the Paris agreement, global financial institutions have channelled nearly $4trn in new lending and underwriting to fossil fuel companies, and UK, US and European banks remain counterparties for financing of their existing and new projects
You can find copies of the letters in the links below.
To learn more about our work on climate, visit our climate change portfolio.