Thursday, 30 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Environment > A trillion dollar climate risk
Environment

A trillion dollar climate risk

Last updated: October 9, 2025 5:54 am
Share
A trillion dollar climate risk
SHARE

A recent study reveals the fossil fuel exposure of the largest 60 banks in the world.

The globe’s largest financial institutions hold over $1.6 trillion in credit risks related to coal, oil, natural gas production, and fossil-fuel power generation, as reported in a new analysis from Finance Watch.

The findings suggest a feasible solution with minimal financial impact. A climate systemic risk buffer could provide banks with an essential safety net against potential losses from fossil fuels, reducing the buildup of climate-related risks, and safeguarding the financial system as well as taxpayers from potential crises.

According to Finance Watch, the implementation of such a buffer would be relatively straightforward for EU banks, which would only need to set aside a few weeks’ worth of profits to support this additional capital requirement. This measure could be enacted without hindering banks’ capacity to lend to the broader economy.

Mispricing

Julia Symon, Head of Research and Advocacy at Finance Watch, stated, “Banks currently have over a trillion dollars tied up in mispriced fossil fuel assets.”

“This represents a carbon bubble that could potentially burst, reminiscent of the subprime crisis in 2008. This risk is not being adequately acknowledged, and banks are unprepared. Their risk assessment models are either retrospectively focused or depend on forecasted climate scenarios that overlook the intricate realities of climate change.”

“This oversight allows risk to accumulate. A sudden policy change or significant climate incident could provoke abrupt market reactions, resulting in plummeting fossil asset prices.”

She further noted, “What’s more concerning is that the mispricing of fossil fuel loans perpetuates financial backing for the sector, exacerbating the climate crisis and amplifying risks throughout the financial system.”

See also  Eliminar las traducciones de alertas meteorolĂłgicas en EE UU pone en riesgo la vida de millones de personas

Transition

Greg Ford, the report’s author and a Senior Advisor at Finance Watch, remarked, “There exists a significant prudential gap that permits climate-related systemic risks at banks to remain unregulated.”

“Our analysis indicates that a climate systemic risk buffer would be a cost-effective and beneficial approach to mitigate these risks and enhance the resilience of banks. Importantly, this could be rolled out without impacting the lending capabilities of EU banks.”

“Policymakers must address the trillion dollars of mispriced climate risks on bank balance sheets. Delaying action only increases the likelihood of a chaotic adjustment that will adversely affect citizens and the wider economy.”

Recently, the European Central Bank cautioned that “a haphazard transition to a green economy may result in substantial losses for banks concerning their high-emission firm exposures.” Nevertheless, existing data demonstrates that climate risks are not being adequately integrated into banks’ internal risk models.

This Author

Brendan Montague is part of the editorial team at The Ecologist. This article is based on a press release from Finance Watch.

TAGGED:ClimateDollarRisktrillion
Share This Article
Twitter Email Copy Link Print
Previous Article Dollar Rises on Hawkish Fed Comments and Euro and Yen Weakness Dollar Rises on Hawkish Fed Comments and Euro and Yen Weakness
Next Article Prime Big Deal Days Discounts on Must-Have Luggage Sets Prime Big Deal Days Discounts on Must-Have Luggage Sets
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Melissa Rycroft and Tye Strickland’s Relationship Timeline

Following her journey on The Bachelor, Melissa Rycroft rekindled her romance with Tye Strickland; since…

October 8, 2025

Here are the 5 issues to watch at COP29

The United Nations Climate Change Conference, also known as COP29, is set to take place…

November 8, 2024

NZDF heading for joint military exercise

The military is gearing up for an international exercise where drones will be put to…

June 5, 2025

63 Super-Fun Outside Activities for Kids

Pack a basket with sandwiches, fruit, and snacks, and head to a local park or…

June 11, 2025

Trump appears to side with Musk, tech allies in debate over foreign workers roiling his supporters

President-elect Donald Trump is making waves in the tech industry as he appears to be…

December 28, 2024

You Might Also Like

Adidas North America sales hit by weak dollar, CEO says tariff impact still unclear
Economy

Adidas North America sales hit by weak dollar, CEO says tariff impact still unclear

October 30, 2025
Earth911 Podcast: Thinking Through Post-Growth Living With Philosopher Kate Soper
Environment

Earth911 Podcast: Thinking Through Post-Growth Living With Philosopher Kate Soper

October 30, 2025
Recycling Mystery: Expanded Polystyrene – Earth911
Environment

Recycling Mystery: Expanded Polystyrene – Earth911

October 30, 2025
What if Disaster Strikes as FEMA Is Debilitated by the Trump Administration? 
Environment

What if Disaster Strikes as FEMA Is Debilitated by the Trump Administration? 

October 30, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?