Dilemma on Wall Street: Short-term gain or climate benefit?

A recent analysis of 20 years of research on the social cost of carbon has found that the damage from climate change is higher than previously estimated. Despite this, the financial industry, particularly Wall Street, has been retreating from climate goals rather than recommitting to them. Banks and asset managers are withdrawing from climate alliances, regional banks are increasing lending to fossil fuel producers, and sustainable investment funds are experiencing outflows and collapses. The financial industry faces a dilemma between short-term gains from fossil fuels and the long-term benefits of transitioning to cleaner energy. Additionally, there is a struggle to comprehend the risks that climate change poses to their own investments. While some firms are willing to take a short-term hit to combat climate change, they are not the majority. The financial industry is also grappling with the uncertainty of the US election and the potential rollback of climate efforts. Overall, the financial industry faces challenges in aligning their portfolios with climate goals and understanding the risks associated with climate change. [Extracted from the article]