Why banks consider renewable energy to be a riskier investment than fossil fuels

By Matteo Gasparini, DPhil Candidate, Smith School of Enterprise and Environment, University of Oxford

The financial sector is among the world’s most heavily regulated industries – and for good reason. Financial rules, which force banks to hold capital in reserve when making riskier investments, are designed to prevent financial crises. Other financial regulations, such as accounting rules, aim to provide investors with a credible valuation of their financial assets.

However, new research I conducted with my colleagues…

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