The International Monetary Fund (IMF) considers climate change a systemic risk to the global economy, and is stepping up its efforts to deal with climate risk. So, too, are many central banks and other regulators, which are seeking to raise climate risk disclosure standards.The immediate aim is to help financial institutions and investors better assess their climate-related exposure, and help regulators better gauge system-wide risks. The broader goal is to help ensure that more money flows into low-carbon, climate-resilient investments.The rapid increase of green bonds (for which 95% of the proceeds go to environmental uses) is a positive trend — new green bond issues topped $100bn globally in the first half of 2019 — but much more is required.Bank of England (BOE) governor Mark Carney estimates that the world has just two business cycles, or 12 years, in which to stop runaway climate change.Limiting global warming to 1.5°C will require a 45% decrease in emissions by 2030 and net...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.