Webinar | Indexing capital requirements on climate : What impacts can be expected ?

Increasing the contribution of banks is the major issue that I4CE proposes to address in a study published in September 2021.

The objective is to overcome the classic opposition between the supporters of a Green Supporting Factor (for prudential relief due to the lower risk of green assets) and of a Penalizing Factor (to penalize activities that emit high CO2 levels because they are more exposed to transition risks).

By determining the impacts of these two approaches on project financing, on the internal profitability of banks, and on credit growth or contraction, I4CE demonstrates that prudential tools are perhaps a response to a risk problem, but they do not sufficiently respond to the challenges of the transition. Apart from the scheduled exit from fossil fuel activities for which a strong and localized penalizing factor may be possible, the other impacts on the transition of these devices are negligible or even counterproductive.

Moderation by :

Pauline Becquey, Managing Director of Finance for Tomorrow, will moderate this exchange.
Julie Evain, Reserach fellows, I4CE, will present the highlights of the study.
Pierre Monnin, Senior Fellow, Council on Economic Policies, will then react.

A question / answer period is planned for the second part of the webinar.

This webinar will be held in English.

18 Oct 2021

Webinar | Indexing capital requirements on climate : What impacts can be expected ?

I4CE Contacts

Julie EVAIN

Project Manager – Financial regulation and Europe Email

To learn more

03/03/2023 Foreword of the week
World Bank’s reform: almost a new pilot onboard

After the sudden resignation of David Malpass, the World Bank’s Trump-appointed President, mid-February, Washington surprised the world again last Thursday, with the nomination of Ajay Banga, long-time Mastercard CEO, as his potential successor. Not only was the timing very rapid, but the controversial profile of the nominee also generated some sense of puzzlement. His limited […]
03/01/2023
Supporting financial institutions in developing countries in their alignment journey with climate goals

This report co-written with NewClimate provides practical guidance for international financial institutions to support financial institutions’ alignment with the Paris Agreement goals, and to more broadly contribute to transforming local financial systems. This guidance is developed around three pillars: a harmonised alignment assessment; the alignment of financial intermediaries; and the alignment of financial systems at the national level.
02/17/2023 Foreword of the week
Climate transition plans for banks: European legislators on a razor’s edge

The proposal for mandatory climate transition plans for banks is slowly making its way through the regulatory debate. Proposed by the European Commission and confirmed by the EU Council, this proposal has now also been taken up by the European Parliament. This obligation could be a game-changer for financial risk management and the alignment of financial flows with the transition to a low-carbon economy. It could lead banks to limit their activities in climate-damaging activities, adjust their business models, review their strategies as well as their governance and risk management procedures.

Webinar | Indexing capital requirements on climate : What impacts can be expected ?

Webinar | Indexing capital requirements on climate : What impacts can be expected ?

Julie EVAIN

World Bank’s reform: almost a new pilot onboard

Supporting financial institutions in developing countries in their alignment journey with climate goals

Climate transition plans for banks: European legislators on a razor’s edge