Basel eyes global bank disclosures tied to climate change risks

Expected rules target exposure to potential stranded assets from decarbonization

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The Basel committee will have banks disclose their exposure to potential stranded assets that generate greenhouse gases. © Reuters

YUKI SEKIGUCHI, Nikkei staff writer

TOKYO -- Banks worldwide will be required to disclose their exposure to climate change risks under rules expected to take effect in 2026.

The global push for decarbonization puts certain infrastructure, such as coal-burning power plants, at risk of turning into stranded assets with diminished value.

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