Monetary policy

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.

Current Fed Chair Jerome Powell has taken little to no action on climate change and the next Fed chair should adopt a dramatically different and proactive approach to eliminating climate risk from the US financial system, write David Arkush and …

Adam Tooze, professor of history at Columbia University and director of the European Institute, suggests that Fed chair Jerome Powell could be Biden’s shield for advancing the administration’s climate goals.