Monetary policy

Not all eurozone central banks are as active as the European Central Bank on climate-related policies, and some are even blocking progress, says Clarisse Murphy of Reclaim Finance.

Political economist Ann Pettifor says the collapse of Credit Suisse and other banks has shown that only the state has the firepower to address systemic problems, including climate change.

MEPs have adopted a resolution allowing the ECB to align its policies with EU objectives in addition to price stability. This is a golden opportunity to green monetary policy, says Adua Dalla Costa of Positive Money.

Countries in the Asia Pacific region are highly vulnerable to climate change and central banks must do more to mitigate the physical and transition risks, say policy experts from WWF.

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. …

Central banks must reappraise existing orthodoxies in the face of climate change and accept their responsibilities in pursuing a green and socially just transition, say economists Burcu Ünüvar and A Erinç Yelden.

Regulators should be mindful of the limitations of the European Central Bank’s climate stress test and beware of a too-big-to-fail scenario once climate risks start materialising, argues Julia Symon of Finance Watch.

China’s carbon emission reduction facility must provide enough of an incentive to influence lending decisions, while also supporting prudent allocation of funds, says economist Sebastian Guo.

The quest for ever-more data must not delay action to address climate risks, says economist Danae Kyriakopoulou, because the risk of doing too little far outweighs the risk of doing too much.

The recent FSOC report on climate-related financial risk shows the gap between diagnosing the problem and acting to address it is significant, says Alexander Barkawi.