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Writer's pictureNuno Moreira da Cruz

“Green Financing”

Updated: Mar 14, 2019


Last October 2018 a Networks for Greening the Financial System (NGFS) was set up by 18 central banks and supervisors (since then another three members, including Bank of Portugal, joined), and its key founding declaration was that climate change risks are part of their mandate. Also recently the European Central Bank has warned central banks that it considers climate change as a key risk within the Eurozone. In other words, some of the most relevant financial institutions finally recognise that Climate change will certainly have a huge impact on any investing risk assessment decision and that it poses a serious threat to the global financial stability.

In the same tone, the Portuguese Securities Market Commission (also known by its initials "CMVM", supervisor and regulator of the “stock markets”) has just launched a reflection and consultation document "Sustainable Finance" for all stakeholders, inviting submissions by 31 March.

These are clearly steps in the right direction and key enablers for "green investments" to shine - or, at least, a warning signal to less "Responsible Businesses" in search of capital for their "not so green" activities.


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