Press contacts: Shana 07546 166787 | XR UK press team press@extinctionrebellion.uk

Photos: https://drive.proton.me/urls/WFVCDS5XJR#OEow1XVNSOdf

Early on Wednesday 23rd of July, five scientists occupied the lobby of the Prudential Regulation Authority (PRA), part of the Bank of England.

Five scientists remained in the PRA’s lobby from 8am until 9am, during the morning arrival of employees, demanding capital requirements on fossil fuels in the insurance and banking sectors. Three more offered flyers to staff inviting them to an international network of financial regulators working for an end to fossil fuels expansion projects. [Signal link]

This protest took place during the second to last week of the PRA’s public consultation on climate risk in insurance and banking, entitled ‘Enhancing banks’ and insurers’ approaches to managing climate-related risks’ [1]. The protestors argued that the PRA should be doing more to regulate these industries in a way that mitigates climate-related risks, by introducing capital requirements that would discourage providing financial and insurance support to the fossil fuel industry that is leading us ever deeper into climate catastrophe. 

Capital requirements are the amount of liquid capital that must be held by a firm, reflective of the risk of their assets, in order to help protect the economy from collapse. Capital requirements on fossil fuels would deem these assets riskier and increase the manditory amount to be held, thereby discouraging the holding of these assets.

The scientists taking part insist that climate and ecological breakdown must be central to discussions around mitigating economic breakdown – allowing insurance and banking sectors to continue to insure and loan to fossil fuel companies does not follow scientific consensus or economic logic. Signs were held with calls to action, “Climate tipping points = economic risk. Stop new fossil fuels, capital requirements now” and “Ecosystem collapse is financial collapse, capital requirements for fossil fuels now”.

Signs also quoted Günther Thallinger, Allianz SE board chairman from his March 2025 article ‘Climate, Risk, Insurance: The Future of Capitalism’ [2] stating “This is about saving the conditions under which markets, finance, and civilization itself can continue to operate. […] There is only one path forward […] burning less carbon or capturing it at the point of combustion.”

“Those that work in insurance and at the PRA, like us scientists, know how dire the situation is,” said Shana, Space Engineer and occupier of the lobby. “To talk about ‘managing climate-risk’ in regard to banking and insurance operations whilst ignoring the fact that these same firms are enabling new oil and gas projects is baffling. They’re advising companies on how to manage a crisis that these same companies are actively contributing to – it’s like giving fire safety training to the person lighting the flames. Instead of just managing risk we need to actively be mitigating risk – something the PRA can do through capital requirements on fossil fuels for banks and insurers.“

The PRA, in its latest paper on climate risks in the financial sector, admits that most banks and insurance companies are not properly analysing their climate related risks, and the industry requires work at a governance level to better understand climate risks including climate scenario analysis (eg. unprecedented, non linearity, tipping points) to fully capture future risks [1]. A recent article in the Financial Times quotes senior Bank of England staff who resigned over the deprioritization of climate and nature risks [3].

Capital requirements on fossil fuels is not as radical an idea as it may seem – the European Insurance Authority (EIOPA) recommendeds capital requirements on fossil fuels “to accurately reflect the high risks of these assets” [4] and capital requirements are mentioned in the PRA consultation paper’s current iteration. However the PRA still states that no new capital requirements will be imposed on top of what is required now. This results in little financial incentive for banking and insurance firms to reduce their involvement in new oil and gas expansion projects, missing a vital opportunity to incentivise meaningful change in our financial sector. 

[1] CP10/25 – Enhancing banks’ and insurers’ approaches to managing climate-related risks – Update to SS3/19, https://www.bankofengland.co.uk/prudential-regulation/publication/2025/april/enhancing-banks-and-insurers-approaches-to-managing-climate-related-risks-consultation-paper

[2] ‘Climate, Risk, Insurance: The Future of Capitalism’​​​​​​​, https://www.linkedin.com/pulse/climate-risk-insurance-future-capitalism-g%C3%BCnther-thallinger-smw5f

[3] Financial Times: Bank of England staff depart after downgrade of climate risk, https://www.ft.com/content/c9919c02-8328-4fa0-af4d-a108770a9f73

[4] EIOPA recommends a dedicated prudential treatment for insurers’ fossil fuel assets to cushion against transition risks, https://www.eiopa.europa.eu/eiopa-recommends-dedicated-prudential-treatment-insurers-fossil-fuel-assets-cushion-against-2024-11-07_en

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Extinction Rebellion (XR) is a decentralised, international and politically non-partisan movement using nonviolent direct action and civil disobedience to persuade governments to act justly on the Climate and Ecological Emergency.

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Time has almost entirely run out to address the climate and ecological crisis which is upon us, including the sixth mass species extinction, global pollution, and increasingly rapid climate change. If urgent and radical action isn’t taken, we’re heading towards 4˚C warming, leading to societal collapse and mass loss of life. The younger generation, racially marginalised communities and the Global South are on the frontline. No one will escape the devastating impacts.