Climate Finance

15 posts

An Opportunity to Strengthen Climate Risk Management in the Derivatives Market

This piece previously appeared in EDF’s Climate 411 Blog.  Disasters that are fueled by climate change, like fires, floods, and hurricanes, increasingly pose risks to the U.S. financial system, including the derivatives market. The U.S. Commodity Futures Trading Commission (CFTC) regulates the derivatives market and is now considering updates to […]

Banking Regulators Act in the Face of Headwinds to Address Climate Risk

President Biden’s May 2021 Executive Order on Climate-Related Financial Risk is showing results. While the financial world is still waiting for key climate-related rules from several financial regulators, including the Security Exchange Commission (SEC), there has been some forward progress in recent weeks. The new regulations released by a group […]

Photo of Offshore Oil and Gas Facility

Decommissioning Offshore Oil and Gas Infrastructure in the Face of Climate Change and the Energy Transition

On August 31, 2023, the Sabin Center for Climate Change Law and the Columbia Center on Sustainable Investment (CCSI), as part of their broader Climate Law and Finance Initiative, published two reports analyzing legal and contractual regimes governing decommissioning of offshore oil and gas infrastructure projects and identifying decommissioning-related risks […]

New California Legislation Would Be a Major Step Forward for Climate Disclosure

This piece previously appeared in the CLS Blue Sky Blog. The Securities and Exchange Commission regulations on climate disclosure, first proposed in March 2022 and likely to be issued in final form in October 2023,[1] have drawn considerable controversy and face an uncertain fate in the inevitable litigation.[2] Much less attention has […]

Elsberry, MO, June 20, 2008 -- A levee in the Elsberry levee district breaks, flooding farmland and houses in the area. Jocelyn Augustino/FEMA

A Climate Adaptation Toolkit for the Insurance Industry

On July 21, 2023, the Sabin Center launched its latest report, Modelling Climate Litigation Risk for (Re)Insurers. This report, which forms part of the Sabin Center’s broader Climate Law and Finance Initiative, provides a toolkit to help academics, attorneys, insurance practitioners, and industry regulators model (re)insurer climate litigation risk. Insurance […]

The Tragedy on the Financial Horizon is Closer Than You Think

In September 2015, then Bank of England Governor Mark Carney gave a landmark speech on the “Tragedy of the Horizon.” The concept was simple: climate change creates tremendous risk for financial markets, but these mounting risks are ignored by investors due to the market’s tendency towards myopia. The speech marked […]

Global Consensus is Emerging on Corporate Scope 3 Disclosures. Will the SEC Lead or Lag?

2023 is a significant year for corporate climate disclosure rules: regulators around the world are issuing or strengthening their disclosure requirements for registered companies pertaining to sustainability and climate-related financial risk. In Europe, the European Commission plans to finalize initial reporting standards for corporate sustainability reporting by June. UK regulators […]

The Fiduciary Duty of Directors to Manage Climate Risk: An expansion of corporate liability through litigation?

On  February 9, 2023, ClientEarth filed a derivative action against the Board of Directors of Shell at the High Court of Justice in England and Wales (ClientEarth v. Shell’s Board of Directors). The lawsuit alleges that the Board has failed to manage material and foreseeable climate risks, therefore breaching UK […]