Barclays, Morgan Stanley Lead Banks Into Milestone CO2 Deal (2)

A group of banks led by Barclays Plc and Morgan Stanley is working on a compromise deal to unlock a months-long stalemate that’s stalled efforts to calculate and disclose the carbon footprints of the industry’s capital-markets operations.

Any agreement would mark a milestone in climate finance. Assigning responsibility for so-called facilitated emissions — or those that are enabled through debt and equity underwriting — remains a divisive subject, which is the main reason climate accounting has so far focused on direct lending. But that’s about to change.

The Partnership for Carbon Accounting Financials (PCAF), a global alliance of banks created …