Climate: New Zealand wants to force the financial sector to assess its impact on the climate

New Zealand is one of the few countries To include it in its code A “zero carbon” target by 2050. But over the past three decades, greenhouse gas emissions have increased by more than a quarter, and the most recent annual report shows they are still not decreasing.

Faced with this observation, the New Zealand government announced “urgent measures” to reverse the situation, Reports this Tuesday, The New Zealand Herald, Daily with the largest distribution in the country.

Thus a world-leading law was introduced by: It obligates banks, insurance companies, and investment managers to report on the impact of their activities on global warming.

About 200 large companies participate in the country

Banks and insurance companies with total assets of more than 1 billion New Zealand dollars (or 590 million euros) as well as issuers of stocks and debt securities listed on the stock exchange will need to complete these announcements. Reuters details. About 200 of the country’s largest companies, as well as many foreign companies, will be subject to the legislation.

“We simply cannot achieve our goal of carbon neutrality by 2050 if the financial sector does not know the impact of its investments on the climate,” James Shaw said in a statement. This law will place climate risk and resilience at the center of financial and business decision-making. “

The bill, which has been submitted to Parliament and is expected to go out for first reading this week, also requires financial companies to explain how to manage risks and opportunities associated with climate change. Once the law is passed, climate reporting will be required in fiscal years beginning the following year.

Forgotten methane by “zero carbon”

Europe, no country law has been passed comparable to that offered in New Zealand. But Pressure is mounting on the banking sector With regard to climate risks. Banks and other financial institutions will have to publish the climate risk exposure of their various portfolios in the coming year. In addition, in France, the major banks Each update their strategy Charcoal production.

While New Zealand popped up with many iconic climate announcements – like Declaration of a state of climate emergency Or produce 100% renewable energy by 2035 – these promises struggle to translate into short-term policy measures.

In particular, the government decided not to include methane in its “zero carbon” target. Emissions of this gas, Derived from agriculture, A core sector of the New Zealand economy, it would only have to fall in the range of 24% to 47%. Such as Climate Action Tracker indicates, However, methane accounts for more than 40% of New Zealand’s emissions, which ranks the country as “insufficient” in terms of its climate effort.