European authorities have told banks for the first time to takeaccount of environmental risks in lending decisions, ramping uppressure on the financial industry to respond to climatechange.
|In lending guidelinesissued Friday, the European Union's top banking regulator saidbanks must incorporate climate considerations in credit policies.Banks should also assess whether borrowers could be liable forcontributing to global warming.
|The Paris-based European Banking Authority called the move a"significant step" in the EU's fight against climate change.
|The EU is moving to embed environmental goals in standards forbanks, money managers, and insurers, in the hopes of directingtrillions of euros toward a radical revision of the region'seconomy. The bloc has been at the forefront of global efforts toreduce greenhouse gas emissions by channeling the financialindustry toward green investments.
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