Here’s another in a series of articles from the Rocky Mountain Institute (RMI): 90 Percent of Euro Area Banks Are Out of Step with Paris Goals. How Can They Get on Track? An excerpt:

(An analysis) of 95 Euro area banks found that approximately 90 percent are misaligned with the goals of the Paris Agreement. Misalignment with climate pledges can expose financial institutions to significant risk as policy and market conditions increasingly reflect climate realities. For example, when carbon-intensive borrowers face carbon pricing, regulatory restrictions, or shifting consumer preferences, they can become less competitive against peers and more prone to default on loans.

We all wish banks would get on board with climate change mitigation and, at a minimum, refuse to lend trillions of dollars for fossil fuel projects around the world.  After all, this could have the effect of helping developing countries “leapfrog” over coal and natural gas power generation plants and move directly into nuclear and renewables.

Is this “misalignment” and its accompanying business risk going to be a factor?  Perhaps we should hold out hope.  It would be far better if taking action were done simply because it’s the right thing to do, but that doesn’t seem to be happening.

Banks Misaligned with Climate Goals