"Banks' Vote to Restrict Emissions Accounting in Financial Transactions"

Banks in an industry working group have voted to exclude two-thirds of the emissions linked to their capital markets businesses from being attributed to them in carbon accounting, sparking discord with environmental advocates who argue that banks should assume full responsibility for emissions generated by activities financed through bonds and stock sales. The decision could impact banks' targets for becoming carbon-neutral, as almost half of the financing provided by the six biggest US banks for top fossil fuel companies came from capital markets. The accounting standard will not be mandatory, but the Partnership for Carbon Accounting Financials (PCAF) hopes that others will follow the standard that emerges.