Climate risk-weights a ‘terrible idea’ for aiding transition
Carbon pricing and direct regulation of top emitters seen as better approach
Tweaking bank capital rules to provide preferential treatment for exposure to green assets will not be effective at reducing greenhouse gas emissions in the real economy, according to three financial sector executives.
“Unless sectors are given the direct policy signal that they need to transition their business, they are not necessarily going to undertake that transition of their own accord just because the bank makes their lending a little bit more expensive,” says Judson Berkey, a managing
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