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The ABA recognises that climate change is a global problem that requires a sustainable global solution. Australia’s economy and environment are particularly vulnerable to the impacts of climate change. Governments, businesses and the community all have a role in driving changes in behaviour and responding to the challenges posed by climate change.
The banking and finance sector will face risks and opportunities with the physical impacts and the regulatory responses to climate change.
The ABA believes that participation by the banking and finance sector will be critical to the successful design and implementation of various climate change policies and the successful structural adjustment by companies and individuals. Banks and other financial institutions are well placed to develop and deliver the necessary infrastructure and products and assist businesses and households understand their exposures and take appropriate actions to shift to a lower emissions economy.
The banking and finance sector has an important role to play in a number of crucial areas, including:
The ABA believes that it is important to encourage the development of a global carbon market, initially through the establishment of a price on carbon and the introduction of a carbon market in Australia. Establishing a carbon price will be fundamental to changing the behaviour of governments, businesses and the wider community – which is critical to shifting the high emissions global economy to a lower emissions global economy.
The ABA supports:
For more information on the ABA’s position on climate change, click here
Environment and sustainability
A number of banks have in place strategies and programs that focus on ensuring environmental management of their activities and sustainable approaches to the way in which they do business. These strategies and programs range from minimising their own environmental footprint, to managing climate risks and building capacities within the market and the community, to delivering targeted products and services to help their customers own environmental management.
Click on the links for more information about banks’ environment and sustainability programs:
The Australian banking industry supports the sustainable commercial use of land and water. Land and water ownership are the main forms of collateral used by agribusiness as security for loans. The regulation of water and land can have a significant impact on their value as security for loans. The regulation of water and land can also affect their use in producing cash flow and therefore the ability of a business to meet their financial obligations. The ABA therefore has an active interest in the regulation of water and land.