Analysis, Climate

EU banks penalise borrowers for climate risk

By Giada Zampano
VELSEN, NETHERLANDS - OCTOBER 5: Tata Steel steel mill close to the North Sea coast and port of IJmuiden on October 5 ,2023 in Velsen. Tata steel is one of the major polluters in the Netherlands in terms of CO2, nitrogen and heavy metals such as lead and mercury and residents around Tata Steel, formerly Hoogovens, have been concerned for some time about carcinogenic substances falling into the area. (Photo by Sjoerd van der Wal/Getty Images)
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EU lenders are charging higher borrowing rates to firms that emit more carbon than their peers, a new report has found, as climate risk moves up banks’ agendas.

The study, published by the Centre for Economic Policy Research, found “empirical evidence” of a “climate risk-taking channel”, in which ...

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