Impressive momentum has built up behind the effort by the world’s financial regulators to create coherent classifications to define what economic activities should truly count as sustainable, but this could also be setting the scene for fragmentation.
EU’s green taxonomy struggles on the details
The sprawling EU sustainability taxonomy is fiendishly complex, politically contentious and monumental in its practical scope. It suffers from yawning data gaps, and some feel its credibility is being sabotaged by the very states that backed it at the outset.
Central banks plot pivot towards net-zero
Central banks have signalled a new phase in tackling climate change by placing a net-zero carbon strategy at the core of their monetary policy and oversight of financial institutions.
US regulators scramble to catch up on climate change policies
The Federal Reserve and other US financial regulators are framing a slew of regulations on climate change as they hurry to deliver on ambitious policies to combat global warming set out by the Biden administration.
Singapore prioritises transition activities in its green taxonomy
The overwhelming focus on transitioning the world economy to green technologies such as solar energy has a simple drawback: it fails to place value on minimising emissions over the coming decades of existing brown industries like generating electricity from fossil fuels.
Hong Kong leverages its capital markets in bid to dominate green finance
Hong Kong, encouraged by mainland China, has ambitions to become Asia’s green financial hub, though the territory still has a way to go to establish its sustainable credentials. By Victor Smart
FSB warns of climate change threat to financial stability
Policy-makers and their advisers have at last recognised the implications of climate change on financial stability, marking a sea change in political sentiment on this issue. By Victor Smart
EU remuneration rules to trigger tough conversations with senior bank staff
New regulations imposed by the European Banking Authority in December are going to lead to “difficult conversations” with their senior bank staff. By Victor Smart
Reforming Australia’s responsible lending rules could be start of deregulatory drive
Australia’s rules around consumer lending face a big shake-up with some politicians declaring them too prescriptive, which has raised questions over whether this is a one-off or the start of a deregulation drive.
Whistleblowing increasingly seen by regulators as important for exposing misconduct
Some regulators are beginning to see the benefits of whistleblowing in helping them route out misconduct, but so far, there is a reluctance to mirror some aspects of the US approach
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