London (CNN Business) Central bankers and finance regulators have warned banks to act urgently to fight climate change or risk going bust. Another major risk from climate change is a sharp decline in the value of assets owned and traded by financial institutions. The group warned that climate risks are not being properly reflected in asset prices, and they pledged to take steps that will make banking more responsible and "green." Francois Villeroy de Galhau and Mark CarneyThe report recommends that central banks and other regulators integrate climate change risks into their supervisory activities — for example by stress testing banks on their vulnerability to climate change. The UN Intergovernmental Panel on Climate Change said last year that carbon dioxide emissions would need to fall by 45% from 2010 levels by 2030 and reach "net zero" around 2050 to limit warming to 1.5 degrees.

Source: CNN April 17, 2019 14:37 UTC