China has written its own version of the EU’s SFDR. New disclosure rules require sustainability-labelled funds to hold what their names promise, aligning at least 80% of assets with their stated strategy. https://shorturl.at/vBwNs

A Banque de France study finds that banks lend less during heatwaves. Acute heat depresses SME credit for up to five years. Chronic warming keeps it down for up to eight. https://greencentralbanking.com/2026/07/07/banks-lend-less-during-heatwaves-banque-de-france-study-finds/

The Centre for Research on Energy and Clean Air (CREA) warns that Indonesia's aluminium push could add 8 GW of new captive coal power. Only 4 of 45 planned aluminium projects use clean energy, despite strong renewable potential in bauxite-rich regions. https://shorturl.at/HKiR4

The Bank of Japan lets banks define what counts as climate finance, and lending has passed US$130bn. Positive Money warns that weak rules risk refinancing misaligned activities. https://greencentralbanking.com/2026/07/17/weak-guardrails-risk-undermining-bojs-climate-lending-scheme-warns-thinktank/

Climate litigation is no longer a hypothetical for banks and insurers. More than 3,600 cases are underway across 62 countries, and financial firms are now targets. https://greencentralbanking.com/2026/07/10/climate-litigation-risk-banks-and-insurers-ecb/

China's asset managers must now prove their green funds are actually green. Funds branded "ESG" must align at least 80% of assets with their strategy. Experts are calling it China's SFDR. https://greencentralbanking.com/2026/07/01/china-launches-sfdr-style-disclosure-rules-for-sustainability-funds/

Japan issues 76% of the world's transition bonds. However, its gas-heavy spending risks normalising weak "transition" labels across Asia, warns the Energy Shift Institute. https://greencentralbanking.com/2026/05/06/japans-transition-bond-market-finances-gas-projects-that-barely-cut-emissions-report

Britain's new PM handed the Treasury to the ex-Defence Secretary, not climate champion Ed Miliband. The money tells the same story: 3.5% of the GDP going to defence by 2035, and only 0.5% to net zero. https://greencentralbanking.com/2026/07/22/in-the-uk-the-treasury-chooses-defence-over-climate/

New research finds that climate change has already cost the UK about 2% of its GDP. On a high-emissions path, damages climb to around 10% by 2100. Keeping warming under 2°C sharply limits the damage. https://greencentralbanking.com/2026/07/08/uk-economy-climate-risk-from-climate-change/

JP Morgan is one of the first banks to call climate tipping points an immediate cash-loss risk. But its report never mentions fossil fuels, a sector it put $192bn into in 2024. https://greencentralbanking.com/2026/05/14/jp-morgan-becomes-one-of-the-first-banks-to-look-at-climate-tipping-points/

Credit risk frameworks need to account for exposure to accelerating physical climate risk, a report from Cambridge University suggests.

The Bank of England now calls climate change an imminent risk to UK financial stability. Its 2026 disclosure warns a rapid repricing of gilts, bonds and equities could match recent market stress.  https://greencentralbanking.com/2026/07/03/uk-financial-stability-climate-change-risk-say-boe/

Companies need to shift the responsibility of addressing sustainability to top management if the business world is to navigate climate risks, says Emmanuel Faber, the chairman of the International Sustainability Standards Board (ISSB).

Sustainability focus must shift to CFOs from CSOs, ISSB chair says

C-Suite awareness of sustainability is growing, but there is not enough measurement of climate risks in balance sheets

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Thirty of the world's biggest insurers were asked to stop underwriting fossil fuel expansion in the Coral Triangle, the most biodiverse marine ecosystem. Only one said yes: France's SCOR.  https://greencentralbanking.com/2026/06/15/insurers-back-lng-coral-triangle-expansion-despite-climate-risk/

The Institute of Finance and Sustainability (IFS) is set to release new sectoral benchmarks to help financial institutions in China assess the credibility of companies’ decarbonisation plans when securing transition finance.

The UK economy could lose up to 10% of its GDP if temperatures continue to increase. #climatechange #heatwave #energytransition 

As Europe faces its third heat wave of the summer, bank lending is likely to go down. A working paper from the Banque de France finds banks lend less during heatwaves. #climate #climatechange #heatwave

Banks lend less during heatwaves, Banque de France study finds

Heatwaves more likely to hit real estate, construction and services, while transport, leisure and mining hurt by chronic temperature rises as well

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The European Central Bank’s new climate factor is a welcome step forward, but could fall short if flaws aren’t addressed, says central bank expert Clarisse Murphy #climate #ECB #EUclimatefactor #climatepolicies #monetarypolicy

The ECB’s climate factor: a good idea that deserves better implementation

The European Central Bank’s new climate factor is a welcome step forward, but could fall short if flaws aren’t addressed, says central bank expert Clarisse Murphy

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Clearing a rainforest can make a country's debt look more sustainable. On paper, at least. That is the blind spot that GDP or Gross Domestic Product was never built to catch. Swipe to see the metric that's trying to replace it. #GrossEconomicProduct #BeyondGDP #HealthyEcosystems #GreenFinance

The Bank of England just told banks that coal bonds aren't good enough to borrow against. We broke down what changes on October 31st, and why campaigners are calling it a precedent.  Read: https://shorturl.at/REwES #ClimateFinance #GreenCentralBanking #BankOfEngland #ClimateRisk #NetZero

If we want to get serious about navigating climate risks, responsibility for sustainability needs to be on the C-suite, International Sustainability Standards Board chair Emmanuel Faber said.  Find out more about the latest updates from ISSB here: 

Going a step beyond the European Central Bank which has so far only applied discounts not exclusions, the Bank of England just told banks that coal bonds aren't good enough to borrow against. Read: https://shorturl.at/VnYm0 #ClimateFinance #GreenCentralBanking #BankOfEngland #ClimateRisk #NetZero

France's central bank's new governor Emmanuel Moulin has pledged to continue the green leadership his predecessor built; however, his confirmation hearings show him leaning in on some climate measures, and holding back on others.  Learn more: https://shorturl.at/CfCaA

Norway's $2.3 trillion oil fund built the best climate-risk radar on the planet. Then it ignored almost everything the radar told it. The reason why says a lot about the limits of climate finance. 👇 Read the full article here: https://lnkd.in/e3z9u-D7

Sustainable bond markets need stronger reporting standards and implementation tools to take account of social and environmental factors, a coalition of leading organisations recommends. 

Every company produces emissions.  Scopes 1, 2 and 3 are the standard framework for calculating a company's carbon footprint, but data gaps and accounting flaws remain. Our latest explainer breaks down what each scope actually measures. Read: https://shorturl.at/PZvUp

ECB president Christine Lagarde sees Middle East war and oil shock accelerating green transition

A new report from Cambridge University suggests that credit risk frameworks be overhauled to account for exposure to accelerating physical climate risk and increasing insurance inadequacy.

Credit risk frameworks need to respond to rising physical climate damage, report says

Current frameworks are too backwards looking and fail to account for rising uninsurability as well as investments in resilience and adaptation

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A group of central bankers just released two reports highlighting the challenges of climate change on monetary policy decisions.  Read more:

Climate change and the energy transition could change monetary policy as we know it

Two reports from the Network for Greening the Financial System outline how central banks should respond to increased climate risks.

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The European Central Bank is set to meet its emissions targets, as ECB president Christine Lagarde said current geopolitical tensions are likely to accelerate the transition to green energy.  Read more: 

ECB on track to meet emissions targets as it increases green bonds in portfolio

ECB president Christine Lagarde sees Middle East war and oil shock accelerating green transition

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