Protect yourself

Author: | Published: 1 Sep 2007

Businesses around the world are taking notice of the new realities of global climate change and their many consequences. These concerns are becoming more than just environmental rallying cries. The real economic and social consequences of climate change will impact financial transactions, and businesses are taking notice. As the capital markets are tapped to finance environmental initiatives, how can lenders protect their interests and address the risks inherent in this growing but uncertain marketplace?

The Kyoto Protocol

The Kyoto Protocol, developed under the authority of the United Nations Framework Convention for Climate Change (UNFCCC), represents the largest multinational effort so far to address the problems associated with greenhouse gas (GHG) emissions. Although the US has not ratified the Protocol, it remains a fundamental framework on which mechanisms to reduce GHG emissions will be developed, and how these efforts will be integrated within the global capital markets affecting financial institutions.