Climate risks could wreak havoc on financial markets, EU watchdog warns

EU’s financial watchdog has called for governments to consider imposing asset disclosures on industry and stress tests on banks as a guard against economic crisis that could be caused by emergency switchover to clean energy…The European Systemic Risk Board – set up by the EU in the wake of the 2008 crash to monitor risks to financial markets – has warned in a new report of economic “contagion” if moves to a low carbon economy happen too late and abruptly…A warning last December by the governor of the Bank of England that investors face huge losses from climate change was quickly followed by the creation of a new global taskforce…Michael Bloomberg, the former mayor of New York is leading the task force which aims to produce a voluntary industry-led code for disclosures under the rubric of the G20’s Financial Stability Board.

But the new ESRB report appears to go further, by advocating new forms of regulation…Companies already have a legal duty to disclose the principal risks… “We expect to see carbon intensive companies reporting on these risks in annual reports this year so investors can make informed decisions about where to invest money,” she said.

>more> TheGuardian

About groundswellbasscoast

This is on behalf of local climate change group. Material is selected by Bernie McComb and does not necessarily represent opinion of whole group.
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