IISD - International Institute for Sustainable Development

12/01/2023 | Press release | Distributed by Public on 12/01/2023 20:02

COP 28 Side Event | Financing the Future: How should big banks respond to the climate crisis

Since the Paris Agreement, USD 5,500 billion has been channelled into fossil fuel companies from the 60 largest banks in the world. One of these banks, Danske Bank, has now drawn a line in the sand: they will no longer give loans to companies expanding their fossil fuel production.

Fossil fuels are undeniably the biggest driver of climate change. Devastating weather extremes remind us of the dire reality of the climate crisis affecting millions worldwide. These changes also affect the economic system, exposing banks to climate financial risks. But how should big banks respond to the climate crisis, and what is the role of COP 28 and national governments in regulating the banking sector?

At the Danish Pavilion, this COP 28 side event aims to inspire the financial sector, civil society, and regulators by highlighting opportunities, challenges, and lessons learned for redirecting financial flows away from fossil fuels.