Wall Street Hit by New Reality as Legal Risks of CO2 Pact Grow

Wall Street is walking into a new era of risk that has bankers, lawyers and climate campaigners reaching for a different playbook.

As the world awaits the final result of the US midterms, the finance industry is trying to figure out how vulnerable the outcome will leave it. That’s as Republicans plan a new wave of antitrust action against firms perceived to be playing an active role in reducing greenhouse gas emissions.

Nigel Topping, who co-leads the United Nations-backed Race to Zero Campaign, called it the “political weaponization of the reality of climate change.”

“And that’s leading to some ...