After years of “contentious debate”, and what NGOs called “analysis paralysis”, the Partnership for Carbon Accounting Financials (PCAF) has published its long-awaited industry-wide Facilitated Emissions Standard for banks’ disclosures of capital markets financing of carbon-intensive sectors such as fossil fuels. Non-governmental organisations (NGOs) welcomed the new standard saying it was long overdue, but some believe it does not go far enough.
Facilitated emissions stem from off-balance-sheet capital market activities such as underwriting of initial public offerings, equity and bonds, but banks say these transactions are more difficult to account for and report on than financed emissions which stem from direct financing or lending to projects such as a new oil or gas pipeline, for example.
