Wall Street could crumble under the weight of a ‘carbon bubble,’ these groups warn
If Wall Street were a country, it would be the fifth-largest emitter of atmosphere-warming carbon emissions, nestling it right between Russia and Indonesia, a new report says.
A study with a title warning of “Wall Street’s Carbon Bubble” by the Sierra Club and the left-leaning Center for American Progress released Tuesday shows that eight of the largest U.S. banks and 10 of the largest U.S. asset managers combined to finance an estimated 2 billion tons of carbon dioxide emissions based on year-end disclosures from 2020.
And the groups offer some policy suggestions ranging from stress testing to boosting deposit insurance tied to climate risks to toughening supervisory ratings, which financial services trade groups worry mix up short-term risks with longer-term risks.
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