COP26 climate commitments send "clear signal" on how banks should finance transition

COP26 climate commitments send "clear signal" on how banks should finance transition

The 26th U.N. Climate Change Conference, known as COP26, is well underway in Glasgow. A big theme during the first week of the conference was the financial sector's role in addressing climate change.

In this episode of the ESG Insider podcast, we talk to Samu Slotte, global head of sustainable finance at Danske Bank, Denmark's largest bank by assets. Samu talks about Danske Bank's recent decision to join the Net-Zero Banking Alliance, a group of banks committed to aligning the greenhouse gas emissions of their lending and investment portfolios with net zero by 2050 or sooner, in line with the Paris Agreement.

A challenge being discussed at COP26 is ensuring adequate climate financing makes its way to developing nations. "The overarching picture is that there's plenty of cash around looking for suitable investments," Samu says. But he warns that the money is just not getting where it is needed. "The cash seems to be stuck in proven technologies in stable jurisdictions."

Photo credit: Getty Images

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