50 Citigroup could face significant losses in its loan book if global efforts to combat climate change accelerate, according to a confidential analysis conducted by the U.S. bank, reviewed by Reuters. Prepared last summer as part of Citigroup’s submission to the Federal Reserve on managing climate change impacts, the analysis highlighted potential losses if efforts to reduce greenhouse gas emissions intensified. Specifically, if global initiatives aimed to achieve net-zero emissions by 2050, Citigroup could incur $10.3 billion in loan losses over a decade, surpassing the projected $7.1 billion losses under a slower approach. While the estimated losses relative to Citigroup’s $730 billion wholesale loan book are modest, the analysis sheds light on how transitioning away from fossil fuels could impact a major Wall Street bank. The potential losses stem from financial challenges faced by borrowers in sectors such as oil, gas, and real estate if immediate action is taken to curb emissions. It remains unclear how much of this information was included in Citigroup’s official submission to the Federal Reserve, as the bank declined to comment on the matter. Nonetheless, the analysis provides valuable insight into the potential ramifications of accelerated climate action on Citigroup’s business operations. You Might Be Interested In UK Banks Not Involved in Greece Private Sector Deal, UK Treasury Confirms GSK Welcomes Dr. Jeannie Lee as Non-Executive Director to Its Board IDB Chief Suggests Potential Removal of All Taxes on Raw Material Imports Boost for India’s Economy: Rupee Strengthens Against US Dollar VinaCapital Forecasts Strong Growth for Vietnam’s Economy in 2024 Air India close to finalise deal of 50 Boeing 737 MAX planes for Air India Express