Climate change and financial crises: Soft measures will not shield us from the ultimate rainy day. We need hard rules

Financial institutions contribute to accelerating climate change by financing greenhouse gas emitting activities. In turn, they themselves are impacted by the devastating consequences of climate-related events, as well as transition measures towards a more sustainable economy. In order to avoid a climate-related financial crisis, actions to address the risks that climate change poses to the financial system need to be taken without undue delays.