Call for one-for-one prudential capital requirements on fossil fuel financing to prevent an economic crisi
An open letter released on the 27th of October by Finance Watch, together with 111 signatories - among them the GABV -, calls for one-for-one capital requirements as part of prudential regulation: for each euro that finances new fossil fuel projects, banks and insurers should hold a euro to guard against future risks.
Banking and insurance regulators have significantly underestimated the risk weighting for fossil fuel investments, with failure of regulation akin to the situation before the 2008 global financial crisis, leading economists warn. €3.26 trillion has been invested in fossil fuels by world’s 60 biggest banks since COP21 in Paris in 2015. Self-regulation by banks and insurers labelled “a failure to regulate of historic proportions.”
Read the full article and open letter here