Climate risks could wreak havoc on financial markets, EU watchdog warns
by Arthur Neslen in Brussels from on (#13RMD)
Banking advisory group calls for risk disclosure and stress tests to protect against climate inaction should move to low carbon economy happen too late
The EU's financial watchdog has called for governments to consider imposing asset disclosures on industry and stress tests on banks as a guard against the economic crisis that could be caused by an emergency switchover to clean energy.
The European Systemic Risk Board - set up by the EU in the wake of the 2008 crash to monitor risks to financial markets - has warned in a new report of economic "contagion" if moves to a low carbon economy happen too late and abruptly.
