A growing drought risk to Brazil’s financial stability, a climate skills deficit among central bankers, a new initiative on data gaps and more from this week in green central banking.

Cop27 saw agreements on loss and damage but little progress on reducing emissions so central banks may need to reconsider climate scenarios, says Jeremy McDaniels of the Institute of International Finance.

Supply disruptions as a result of climate change could contribute to price instability, Federal Reserve vice chair Lael Brainard has told the Bank for International Settlements’ annual conference.

The governor of the Reserve Bank of Australia clashed with a lawmaker on Monday over a proposal for the bank to play a bigger part in addressing climate change.

New legislation will require Swiss banks, insurers and large public companies to publish climate-related financial disclosures and transition plans by 2024.

The Bank of Japan says it is taking steps to correct a potential carbon bias in its operations, but critics claim its actions are inadequate.

A review of climate-related financial disclosures has found that all lack decision-useful data across the TCFD recommendations and none are aligned with Paris Agreement targets.

Global heating and the natural interest rate, further calls for an RBA climate mandate, how the green transition may reduce inflation and more from this week in green central banking.

Many central banks now recognise they have a role to play in addressing the climate crisis. But so far concerns have not been followed by concerted action, says Nikki Eames of Positive Money UK. …

The report finds that the US central bank has still taken no action at all to consider climate change when conducting monetary policy.

A deal struck at the United Nations climate summit Cop27 calls for rapid and far-reaching changes to the world’s financial system to fund the transition to a low-carbon economy.