Open letter to Bank of England's Andrew Bailey

An open letter from the Green Economy Coalition and over 100 experts to incoming Bank of England governor Andrew Bailey, urging the acceleration of efforts to decarbonise the financial system to align with the Paris Agreement and protect financial stability.

• The financial system currently continues to fund emissions that could lead to global warming exceeding 4°C, despite government commitments to limit temperature rise to near 1.5°C. Failure to adapt and reorient financial flows could lead to catastrophic consequences for banks and insurers, including devastating losses from extreme weather and sudden value drops for carbon-exposed firms due to new regulations.
• While the Bank of England has established foundations such as climate risk stress tests, comprehensive disclosures, and a pledge to disclose climate-related financial risks across its balance sheet, these measures are considered insufficient on their own due to methodological limitations in quantifying risk and the short time horizons of most actors.
• The signatories propose three specific actions for the Bank of England to realign finance with climate targets: making climate-related disclosures mandatory in coordination with the government, excluding fossil fuel assets (starting with coal) from future bond purchases and collateral frameworks, and adjusting the macroprudential framework to ensure capital requirements for banks accurately reflect the risks of high-carbon loans.

APA

Green Economy Coalition (2020). Open letter to Bank of England's Andrew Bailey. https://www.greeneconomycoalition.org/news-and-resources/open-letter-to-bank-of-englands-andrew-bailey

Chicago

Green Economy Coalition. Open letter to Bank of England's Andrew Bailey. 2020. https://www.greeneconomycoalition.org/news-and-resources/open-letter-to-bank-of-englands-andrew-bailey.

Wikipedia

{{cite press release |author=Green Economy Coalition |title=Open letter to Bank of England's Andrew Bailey |date=4 March 2020 |url=https://www.greeneconomycoalition.org/news-and-resources/open-letter-to-bank-of-englands-andrew-bailey |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{greeneconomycoalition2020open, author = {{Green Economy Coalition}}, title = {{Open letter to Bank of England's Andrew Bailey}}, publisher = {Green Economy Coalition}, year = {2020}, month = mar, url = {https://www.greeneconomycoalition.org/news-and-resources/open-letter-to-bank-of-englands-andrew-bailey}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }