Danielle Fugere, president and main adviser to the shareholder of the non -profit organization during SOW, said that disclosure is a condition for maintaining banks for their climate purposes. “We want to understand what they are doing,” she said. Rights such as California reveal financial instability caused by climate change of fueled mine fuels and at least in the theory of financing that will tighten it.
Of course, only a requirement for banks to reveal their emissions and risk -related risk, they will not probably prevent the worst influence of global warming. According to Landmark report 2021 A fresh oil, gas and coal infrastructure cannot be built from the International Energy Agency if the world is to reduce global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit). That is why Patrick McCully, a senior energy transformation analyst for the French NON -PROFIT RECLAIM Finance organization, who is in favor of a more balanced banking sector, said that legislators should “push banks to reduce fossil fuels.”
“These companies operate against the interests of humanity and we have to stop them,” said Grist.
Fajans-Turner said, however, that this kind of policy would be arduous to write and probably will face legal challenges even in the most progressive states in which natural gas bans on the fresh structure were beaten by industry groups.
Ann Lipton, a professor of economic law at the University of Tulane, said that a better way to limit fresh fossil fuel projects is to look beyond the banking sector. For example, legislators may require insurance companies to take into account the financial risk associated with the climate when designing their policies-what may make it arduous for fossil fuels. “We would like the banks to stop financing risky activities, but at the end of the day the bank’s task is to finance things that are predictably profitable,” she said. “This is the task of the rest of the society to do it [thing] not profitable. “
Another strategy is to require banks to publish a clear decarbonization plan, which theoretically can be a kind of rear door to block fresh investments in fossil fuel. “The impairment in possession of the goal is that the bank undertakes some actions to ensure that it will achieve this goal,” said Fugere. If the plan mentions “net zeroing” within a specified period to be reliable, this must include a kind of reduction of fossil fuel financing. If he claims to be in line with the path limiting global warming to 1.5 degrees C, it cannot allow fossil fuels to be expanded.