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ECB Splinters Over Right to Police Banks’ Path to Net-Zero (1)

May 23, 2022, 10:00 AM

A divergence of opinion is forming among Europe’s top banking regulators which could weaken efforts to prepare the financial sector for climate change, according to people familiar with the matter.

The European Central Bank is poised to get the power to oversee so-called transition plans by 2025, in which lenders map out their path to a carbon-neutral future. Yet several national officials who sit on the ECB’s supervisory board are skeptical that climate risks merit new rules, and some are wary that the initiative exceeds the central bank’s mandate, said the people, who asked to remain anonymous because their discussions ...