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ESG & sustainabilitySeptember 2 2022

Capital adequacy requirement for new fossil fuel projects gains EU support

Supporters say the 1250% requirement will target the projects that do the most environmental damage. Victor Smart reports.
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Capital adequacy requirement for new fossil fuel projects gains EU support

Advocates of proposals that would severely limit banks’ ability to finance new fossil fuel projects are increasingly confident about their adoption by the European Parliament in the next few months, following support from a group of cross-party lawmakers.

The European Parliament is considering amendments to the Capital Requirement Regulation, which looks at prudential requirements for credit institutions. One of those proposals has specifically called for full capital funding for new fossil fuel assets.

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