On 8 June 2021, the BoE published the “Climate Biennial Exploratory Scenario: Financial risks from Climate Change” (CBES), identifying climate change as a financial risk with a view to exploring its impact on the banking and insurance sectors. In this post we take a look at the CBES and its implications for banks and borrowers.
The Guardian on Tuesday 30th March had an interesting article entitled “UK criticised for ignoring Paris climate goals in infrastructure decisions”. In summary, various luminaries, scientists, legal and environmental experts, have written a letter and to come out to say that:
- The case concerning the expansion of Heathrow Airport, and the decision by the Supreme Court last year, has set a dangerous precedent, in effect allowing national infrastructure projects to go ahead at the expense of the agreed targets set in the Paris Agreement. In particular to hold global heating to well below 2C above pre-industrial levels.
- The UK Government and the Supreme Court has obligations under the Human Rights Act 1998 (to safeguard the right to life).
- Courts should be forcing Governments of signatory states to adhere to the commitments of the Paris Agreement.
- The Cop26 is in the UK this year, and the UK should be championing the Paris Agreement.
- The plans for new coal mine, new licences being issued for oil and gas exploration in the North Sea, scrappage of the Governments main green recovery measure, and the green homes grants for insulation and low carbon heating are concerning developments.
In June 2020 I wrote an article entitled “Climate change- a wind of change for construction?”. In summary this raised the point whether increasing focus on climate change in relation to major infrastructure projects might run counter to economic efforts to counteract the effects of the global pandemic. Whilst I am writing this from a UK perspective, I dare say the issues are equally relevant to other jurisdictions.
The issue of pollution in major cities in the UK has again been highlighted by the tragic death of a child whose family lived near the south circular in Lewisham. In a landmark case, the second coroner’s inquest found that the levels of pollution were above world safe levels, and that air pollution was a material cause of her death. This tragic case will bring to the fore the national debate on pollution and climate change. Continue reading “Climate change and Construction-revisited”