Authors
Thomas Vellacott et al
Climate change looks to have major economic impacts, representing significant substantial risks in terms of unknown exposure in banks’ balance sheets and also opportunities. The shift towards a low carbon economy is related to major investment needs. There are four key banking opportunities: mobilising new capital sources; developing new regulatory risk products; setting up distribution partnerships to develop energy efficiency markets; and seizing energy efficient opportunities for banks’ property portfolios. Since opportunities/risks will not be the same for all banks, a comprehensive assessment should take into account each bank’s business model and its potential leadership role in the decarbonisation space.