The banking sector, key in the fight against climate change and sustainability.

Climate change has become one of the most pressing challenges of the 21st century, affecting not only the environment but also economic and financial structures on a global scale. In this complex framework, the banking sector stands out as a key player in the search for sustainable solutions. According to the Spanish Institute of Banking and Finance (IEBF), financial entities that adapt to this new paradigm will be better positioned to manage associated risks and, at the same time, will be able to seize the opportunities that arise from the transition to a low-carbon economy. The report titled "Financial Leadership in the Fight Against Climate Change," prepared by Luis Maldonado García-Pertierra, argues that decisions made today in the banking sector will have significant repercussions on global economic stability and the well-being of future generations. This assertion is not trivial, as the financial sector has the power to direct capital flows toward projects that promote sustainability and decarbonization. In recent years, numerous banks have begun to adopt decarbonization commitments in their portfolios, thereby increasing financing for initiatives that drive the transformation toward more sustainable economies. However, the IEBF emphasizes that these efforts go beyond simply offering green financial products; they require a thorough review of business models, risk management, and, in general, the organizational culture of the entities. The World Bank has also highlighted the importance of financial institutions in mobilizing private capital to address climate change. It is evident that banking plays an essential role in closing the financing gap needed to meet global climate goals. This implies that while individual commitments are a positive step, concerted action at the sectoral and governmental level is also necessary. In Europe, countries such as the Netherlands, Germany, and Spain have demonstrated a strong commitment to combating climate change. In Spain, some of the most relevant entities, along with the Spanish Banking Association (AEB) and the Association of Banks and Savings Banks (CECA), signed a joint pact in 2019 establishing the goal of reducing the carbon footprint associated with their credit portfolios. This collective commitment indicates that the sector is taking its responsibility in the fight against climate change seriously. The agreement signed by the Spanish entities stipulates that they must implement methodologies that allow them to assess the impact of their clients' activities, both in terms of environmental preservation and the fight against global warming. This proactive approach is essential to ensure that the investments made are consistent with the sustainability goals established at the international level. However, the IEBF report also warns that the success of these efforts will depend on the existence of real demand for financing for the energy transition from businesses and households. This underscores the importance of ensuring that the projects in which they invest are not only sustainable but also economically viable. The intersection between sustainability and profitability will be key to motivating entities to continue investing in such initiatives. For this transformation toward a greener economy to be effective, coordinated effort is essential. Public policies, economic incentives, and regulation must create a conducive environment that facilitates the flow of private capital into sustainable investments. Without this appropriate framework, the individual efforts of banking entities may be limited. The report concludes that the banking sector has a unique opportunity to contribute to the creation of a more sustainable and resilient economy. However, this goal cannot be achieved in isolation. It is crucial that all stakeholders involved—governments, businesses, regulators, and civil society—collaborate in a joint effort toward this end. Only then will it be possible to build a future in which the economy and the environment coexist harmoniously, ensuring a better world for future generations.