ECB test: Banks face double credit risk in 2030 with slow climate transition
Banks, businesses, and households could benefit from lower costs and reduced financial risks by the end of the decade if measures to drastically reduce emissions are significantly ramped up, according to the latest climate stress test results from the European Central Bank (ECB).
These results indicate that the credit risk of banks could increase by more than 100% by 2030 if initiatives to achieve global climate goals are postponed until the second half of the decade.
The ECB published these findings along with the results of its second comprehensive climate stress test, following the initial test in 2021. This test was aimed at evaluating the effects of various climate transition pathways on companies, households, and financial institutions in the eurozone.
Click here to read the ECB report
