The Climate Lending Comet: What does it mean for banks to 'pick up the pace' on climate action?

By James Vaccaro, January 2022

If you work anywhere close to the field of climate and sustainability, 2022 is likely to have kicked off with only one cultural reference point: Don’t Look Up. It’s been a film phenomenon that’s been harder to avoid than an actual comet hurtling towards you. Striking though they are, the messages haven’t always landed neatly for everyone. In the real world, the citizens of planet ‘finance’ don’t necessarily represent the same polarisation portrayed in the film. Sure, there might be pockets of denialism, but for the most part sustainability concepts have been integrated in the mainstream, so financial institutions know that the comet (climate crisis, biodiversity crisis etc) is coming…If we accept that most of the banking sector is all ‘looking up’ – then what’s the problem? To find out, read the full blog post here.

Cleaning Up After COP: the emerging focus on inequality

By James Vaccaro, October 2021

Finally, it’s here. COP26 will take place in Glasgow next week. After two years of planning and the disruption of Covid, the delayed pinnacle of the 2020 ‘super year’ for climate has arrived. What should we expect in relation to climate-safe banking? A raft of announcements – most likely net zero targets and green finance commitments. Some more validation or submissions to the Science-Based Targets Initiative (like the targets announced by Banque Postale and Amalgamated Bank). There will be many occasions to celebrate progress and the huge momentum generated across the financial sector via GFANZ and the Race to Zero.  Expect a deluge of letters, calls to action, and demands from other stakeholders. And, very likely, some demonstrations aimed towards financial institutions in relation to the pace of change and the credibility of their actions in relation to stated ambitions.

It will no doubt take some time to digest and reflect on all that takes place in the next fortnight. Read the full blog here

Climate Safe COP26 Takeaways

By James Vaccaro, November 2021

Climate Safe Lending Network participants were engaged in a variety of ways, both in-person and virtually, during COP26 in Glasgow. For example, we have had a great reaction to The Good Transition Plan (which was presented at the Green Horizons Summit at COP26 and will be discussed at a webinar hosted by UNEP FI on 9th December). We also continue to be engaged in the Glasgow Financial Alliance for Net Zero (GFANZ) via the network’s role on the advisory panel. 

We’ve had so many conversations with individuals across the network sharing their reflections – from minor triumphs to bruising disappointments; the expectations and emotions had never been higher. And finance had never been so firmly under the spotlight. That’s only likely to increase as the temperature rises (in every sense) on the road to COP27 in Egypt next year. Read the full blog here.

This Week’s IPCC Report is Code Red for Humanity. Is it also the end of Net-Zero by 2050?

By James Vaccaro, August 2021

This week’s IPCC report updates our understanding and our outlook on climate change. Given that the findings in the report are not really a surprise for those working in this field, the real question is how it should impact our strategy. Crucially, are the targets we are now pursuing – principally, ‘Net Zero by 2050’ – still up to the task in helping us manage the impending crisis? Read the full blog here.

Bitcoin has Helped ‘Mine’ a Capital Idea for Fossil Fuel Finance

By James Vaccaro, June 2021

Central Bankers who form the Basel Committee on Banking Supervision (BCBS) issued a proposal to increase the capital held against cryptocurrencies that a bank holds by 1250%. That’s the equivalent of holding full equity against the risks of holding or trading currencies like Bitcoin on its books. Commentators have said that the move amounts to saying to banks: “don’t do it, but if you do, put your own money at risk - not other people's” 

Why would the central bankers step in with such consequential action? Read the full blog here.

Stories from the Front Lines of Bank Climate Action

By Jacqueline Lim, June 2021

Reflections from climate concerned bankers on why the Climate Safe Lending Fellowship is needed in the banking sector right now. Read the full blog here.

A Bit of Empathy for the Central Banker; They Just Might Save the World

By James Vaccaro, July 2021

Spare a thought for the central banker, won’t you? 

It’s not an easy job. Central bankers tend to be mostly invisible to the public unless something goes wrong where the central bankers get blamed and labelled as “experts” who failed to predict the future clearly enough.  But, how can central bankers become the new climate heroes? Read the full blog here.

400 Reasons to be Hopeful

By James Vaccaro, May 2021

Another day, another report. The field of climate finance is producing a deluge of literature. White papers, articles, statistics, reports. Like watching the evening news, we can often become desensitised from the content. It can feel abstracted and remote.

 But this month has felt different….Read the full blog here.

Net-Zero Banking: Doing the Time Warp

By James Vaccaro, April 2021

The launch of Net Zero Banking Alliance took place this month with 43 banks now officially in the Race to Zero, committing to net zero portfolios by 2050. The UN Principles for Responsible Banking (which has over 200 signatories) commits banks to aligning to the Paris Climate Agreement. But this wasn’t as specific or detailed as the guidelines for how to achieve alignment as this new commitment which sets out a path to 1.5-degree alignment across full scope-3 emissions….Read the full blog here.