With world economies taking steps to lower their emissions, an official at the Bank of England said Tuesday investments in fossil fuels are becoming risky.

Paul Fisher, a deputy regulator at the bank, said insurers who invest in fossil fuels could face mid-term risks as global policies develop that would advance renewable energy or otherwise decarbonize the economy.

"As the world increasingly limits carbon emissions, and moves to alternative energy sources, investments in fossil fuels and related technologies -- a growing financial market in recent decades -- may take a huge hit," he said at a London conference.

His warning comes as the low price of oil has forced energy companies to cut back on spending and staff. British energy company BP already announced plans to shed staff and enacted a pay freeze. It ended 2014 with net debt of $22.6 billion. BP Chief Executive Bob Dudley said last month the company is entering a reset phase focused on streamlined spending in the low oil price climate.

A report from the European Union, meanwhile, finds regional industries working on low-carbon energy options grew more than 50 percent during the decade ending in 2011.

Protecting the environment makes economic sense, the report finds, but it adds that long-term goals of cutting emissions can't be achieved under current environmental policies.

European Commissioner for the Environment Karmenu Vella said the report shows regional policies aimed at curbing emissions and advancing renewable energy are delivering benefits, but there's no room for relaxation.

"We must stay ever vigilant to ensure that good policy, well implemented, means excellent environmental results both on land and at sea," he said.