Welcome back to our blog series onĀ Banks, Borrowers, and Climate Change. Today we will be returning to the PCAF Global Accounting and Reporting Standard by taking a closer look atĀ Part B: Facilitated EmissionsĀ and what it means for financial institutions and reporting requirements. Part B of the PCAF standard focuses on ā€œfacilitated emissions,ā€ which are emissions associated with services provided by financial institutions in capital market transactions. These emissions are distinct from financed emissions, which are based on on-balance sheet exposure (e.g., loans and investments). The temporary nature of facilitated emissions means that financial institutions do not usually take on financial (credit) risk in facilitated transactions.

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