As world leaders gather for COP17 in Armenia and prepare for COP31 in Turkey, the pressure is mounting on banks to redirect financing towards climate action and nature protection. But despite ambitious commitments, financial institutions continue to fund fossil fuels and environmentally damaging activities, while investment in clean energy and biodiversity restoration remains far below what is needed.
In this episode of the Sustainable Views podcast, editor Philippa is joined by Anita Hawser, Europe editor of The Banker, and Sustainable Views reporter Ben Steel, to explore why banks are struggling to align their lending with global climate and biodiversity goals.
They discuss the impact of Donald Trump's climate policy rollback, the collapse of the Net Zero Banking Alliance and the challenges banks face in assessing physical climate risks. They also examine why nature-related risks remain poorly understood, whether banks can make biodiversity projects financially viable, and how the rapid expansion of AI data centres is complicating the transition to net zero.
With governments under pressure to deliver clearer policies and financial guarantees, can banks become drivers of the green transition, or will commercial pressures continue to hold back progress?
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