climatecouncil.org.au KEY FINDINGS ii 3 4 Improving the visibility of climate risk is A coordinated effort involving banks, the welcome, but isn’t enough on its own to drive Australian Government and financial regulators is capital out of fossil fuels and into clean energy needed to protect our financial sector, and enable at the speed and scale needed now to tackle the every part of our economy t. [...] The report to phase out the use of coal, oil and fossil outlines global best practices and the positive gas as quickly as possible, our banks are in potential effects of mechanisms such as the fact enabling the opposite: lending billions Task Force on Climate-Related Financial of dollars to expand the fossil fuel industry. [...] Governments, including provide the capital for innovators to in Australia, had to bail out the banks by create new businesses and products, for spending hundreds of billions of dollars in farmers to manage the ups and downs public money to get the financial system– of life on the land, and to deliver major and our economy– back on track. [...] CHAPTER 01 16 CLIMATE CHANGE THREATENS THE STABILITY OF THE FINANCIAL AND ECONOMIC SYSTEMS CLIMATE VULNERABILITY ASSESSMENTS Climate stress testing and scenario analysis of The assessments found that physical and the financial system is increasingly recognised transition risks would increase overall bank as critical in understanding and responding lending losses in the medium to long term, to the. [...] Central banks around the world have lending losses across banks due to the different been applying this approach, including the Bank modelling approaches adopted and climate risk of Canada, the European Central Bank, the Bank impacts are likely to be concentrated in specific of England and the United States Federal Reserve regions and industries.
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- Australia
