Are Financial Institutions Failing To Back The Low-Carbon Economy?

A World Benchmarking Alliance review found only 2 of 400 major financial institutions have credible plans to phase out fossil-fuel financing.

Just about one-third have transition metrics or governance-linked targets, showing weak climate transition planning across finance.

Europe and Central Asia are ahead, while North America trails, underscoring sharp regional gaps in preparedness.

Experts say the sector must move from disclosure to real capital reallocation to support a low-carbon economy and reduce transition risk.