The European Union has drafted a proposal that allows consideration for natural gas and nuclear energy to be included within the scope of “green” investments as countries and environmentalists battle over the complicated classification system. Later this month, the European Commission is expected to suggest recommendations on the environmental criteria needed in order to classify…

The European Union has drafted a proposal that allows consideration for natural gas and nuclear energy to be included within the scope of “green” investments as countries and environmentalists battle over the complicated classification system. Later this month, the European Commission is expected to suggest recommendations on the environmental criteria needed in order to classify…

SHANGHAI—Loopholes in China’s green financing rules could allow big state-owned firms to use proceeds from “carbon-neutral bonds” to fund day-to-day operations including coal-fired power plants, according to research published on Tuesday. The Institute for Energy Economics and Financial Analysis (IEEFA) examined the first batch of yuan-denominated carbon-neutral bonds issued this year by giant state-owned energy…

WASHINGTON—Financial regulators around the world are rushing to implement models to measure the financial risk arising from climate change. Central banks including the Federal Reserve may soon begin to implement climate stress tests of banks, which may limit financing for sectors such as mining, oil, and gas. The world’s largest central banks are pondering how…