International Banking Regulation and Environmental Sustainability

Professor Kern Alexander led a research project sponsored by the United Nations Environment Programme (UNEP) and the University of Cambridge analysing the Basel Capital Accord’s (also known as ‘Basel III’) impact on lending for clean energy projects. Based on this analysis, the project produced a report in 2014 explaining the research findings and making recommendations for how Basel III can be modified and/or how optimal financing structures can be devised to support bank lending for environmentally sustainable projects that help achieve international climate change objectives. His research is also concerned with the macro-prudential economic effects of bank capital regulation on certain areas of sustainable finance.

Professor Alexander's United Nations Report on Banking Stability and Environmental Sustainability (published October 2014) was presented at a seminar organised by the Brazilian Central Bank and Brazilian Banker's Association on 22 September 2015 in Sao Paulo, Brazil. At the seminar, Professor Alexander also discussed future research issues he is addressing for the United Nations on banking regulation and environmental sustainability.

Professor Alexander addressed a group of scientific experts and financial specialists at Cambridge University on  the results of his report for the United Nations entitledStability and Sustainability in Banking Reform: Are Environmental Risks missing in Basel III?

The report was mentioned in the Global Risk Regulator (GRR) (September 2015, Volume 13, Issue 8).

FT/GRR Sept. 2015 Vol. 13 (PDF, 182 KB)