European Central Bank pushes banks to speed up climate work
The European Central Bank is warning that many financial institutions are moving too slowly to shield themselves and Europe’s banking system from the impact of climate change
FRANKFURT, Germany (AP) — The European Central Bank is warning that many of the financial institutions it oversees are moving too slowly to shield themselves and Europe's banking system from the impact of climate change, and it is setting new deadlines to meet those requirements.
The ECB said some progress had been made but that a review of 186 banks published Wednesday showed change was uneven and that “the glass remains half full,” top ECB official Frank Elderson said in a blog post on the central bank's website.
The Frankfurt, Germany-based central bank for the 19 countries that use the euro currency set deadlines for banks to meet climate requirements by the end of 2024.
The ECB, acting in its role as banking supervisor, is pushing banks to identify where they could face the risks of climate change and outline how they would take action. Banks are key to the European economy's functioning because most companies get the credit they need to operate from banks instead of from financial markets, the opposite of U.S. practice, for instance.
