Wall St says Basel 3 will upend climate finance

Ray Dalio, the founder of Bridgewater Associates, addresses the panel session at the Business and Philanthropy Forum, during the United Nations Climate Change COP28 conference in Dubai, United Arab Emirates, December 2, 2023. REUTERS/Thomas Mukoya

NEW YORK: Wall Street’s biggest banks are warning that existing assumptions around much-needed green finance will no longer hold if the US goes ahead with stricter capital requirements.

The Basel 3 Endgame, as the planned rules have been dubbed, marks the final implementation stage in the United States of regulations created after the financial crisis of 2008. Banks will need to set aside more capital, which will make it costlier for them to provide finance.