The G20 nations have reportedly launched an investigation into the financial risks posed by companies investing in fossil fuels.
Reports claim all member countries, including the US, China, India, Australia and Saudi Arabia, have agreed to co-operate or carry out internal probes.
They have also reportedly asked the Financial Stability Board – an international body that monitors and makes recommendations about the global financial system – in Basel to start a public-private inquiry.
The nations will look into whether investing in fossil fuels could lead to global financial risks as it clashes with international climate goals.
The concern around the so-called “carbon bubble” is that if governments across the globe meet their target of limiting global warming to 2°C by cutting emissions, fossil fuel firms won’t be able to burn their oil, gas and coal reserves.
The Telegraph states: “Diplomatic sources have told The Telegraph the investigation is being pushed by France and is modelled on a review launched by the Bank of England last year.”
Scientists have warned two-thirds of fossil fuels need to stay underground to avoid temperature rises of beyond 2°C, which could lead to more floods, droughts and rising sea levels.