Sustainable Finance

At a recent Green Swan conference, the world’s top central bankers agreed they had a clear role to play in tackling climate change. Climate stress tests may prove the most powerful tool to nudge the financial system. According to a recent climate stress test by the French central bank, insurers were far more affected than banks as the exercise suggested that extreme weather could quintuple the cost of related insurance claims by 2050. This will set the premiums to shoot up by 130-200%.

Other central banks around the world will also be conducting similar tests considered to be crucial in repricing the cost of capital between companies. Will climate stress tests be effective?

As the European Commission rolls out a new taxonomy to define “sustainable” activities, lots of questions were raised around it, from its usability to inclusivity. There is also a fundamental issue on data provision. To address this set of questions, the EU Platform on Sustainable Finance presents weekly webinar starting from 21 June through 19 July.

Agrochemicals are highly responsible for disturbing the ecosystem and this has led to severe climate challenges. These chemicals have disturbed the natural balance of microbes that have huge impact in shaping our atmosphere. To combat with climate challenges, we have to focus on new initiatives in Agriculture.
It's true that plants are responsible for saving as well as destroying our ecosystem. Metaphorically speaking

Climate change is a whole-economy problem. Tackling it will require looking at every financial decision through a climate lens. Does the decision result in greenhouse gas emissions or will it reduce them? Will it improve resilience to climatic shocks or worsen vulnerability?

As countries move to implement the Paris Agreement on climate change, they need to know the answers to such questions. They need to be able to track and understand domestic flows of finance so they can better align them with their climate goals, identify gaps and unlock the private investment needed for green, resilient development.

The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are strengthening their cooperation by launching the new US$ 1.01 billion facility targeting high-emitting industries in the private sector. This is GCF's first at-scale engagement in the private sector.