BOE Says Climate Transition Will Cost Finance System Billions
- Banks and insurers could face total losses of £334 billion
- Fitch Ratings describes the test as the ‘world’s toughest yet’
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The Bank of England said UK banks and insurers face climate-related losses of £209 billion to almost £334 billion over the next three decades depending on how quickly the government acts to shift the economy toward net zero emissions.
The UK central bank said the financial system is well placed to absorb those losses, though many of them in the worst case scenario will be passed on to consumers, with the poorest people in society hit hardest.