Last Thursday, the Ministry of Finance of the Eurozone addressed the discussion of new measures to prevent financial risks associated with climate change. The developed plan includes the creation of a data repository on more detailed information about meteorological conditions and ecological status to determine financial risks. These new measures should assist enterprises and organizations in making more informed decisions in crisis situations. It should be noted that the European Central Bank already required banks to provide information on their protective measures against climate threats, as well as an assessment of risks from climate change. In the regulatory document, it is also anticipated the introduction of climate change scenarios in stress-testing the banking system, which will allow to determine how vulnerable banks are to climate threats and what steps need to be taken to strengthen their resilience. One of the key ideas is to propose the creation of a single standard for assessing environmentally sustainable investments and credits, in order to aid in evaluating the contribution of financial institutions to addressing climate change.
--- "The measures outlined will contribute to a more precise understanding of risks related to climate change, and will help us develop strategies for their mitigation," noted a representative of the Ministry of Finance of the Eurozone.
