NGOs call for including financial sector in Germany’s Climate Action Law

The financial industry is a relevant actor in virtually all sectors of the economy and should therefore be included in Germany’s Climate Action Law as well as in any action plan aimed at reducing carbon emissions by 2030, the environmental NGO Climate Alliance says in a position paper. The NGOs call on Germany’s finance (BMF) and environment (BMU) ministries to devise concrete implementation measures for ensuring that climate risks are exposed in investment strategies and that a regulatory framework steers both public and private financial flows away from climate-damaging investment targets towards more sustainable alternatives. “The financial sector plays a key role in achieving the Climate Action Plan’s targets” and market observers agree that “climate-related financial risks so far have not been adequately accounted for,” Climate Alliance says.

Find the position paper in German here.

See the CLEW interview Germany laggard in assessing fossil investment risks and the article German financial sector expects EU standards to boost green finance for more information.