Nature risk

The BoE should strengthen its approach to nature-related financial risks and follow the ECB in embedding nature loss into financial supervision.

Nicola Ranger and Emma O’Donnell explain why tropical forests should be designated as ‘global systemically important natural systems’, essential to global economic security and financial stability.

Financial and monetary policies can be used to direct finance away from companies destroying critically important ecosystems such as the Amazon forest, says Lydia Marsden of UCL.

Forest loss is underpriced and underregulated, generating both physical and transition risks that can impact economic stability, says Elena Almeida of the Grantham Research Institute.

EU central banks have amassed data on climate and nature risk but acting on that information is taking longer, say Daphné McRae and Morgan Després of the European Climate Foundation.

Sarah Krisht of NatureFinance explains how new tools can be used to develop combined nature and climate scenarios to assess interconnected risks.

Laura Canas da Costa and Romie Goedicke den Hertog of UNEP FI assess current approaches to nature risk and lay out recommendations for managing them.

Staff at the Dutch central bank explain how their new framework can help regulators assess the impact of ecosystem service shocks and nature-related financial risks on banks.

Cop16 is a chance for leaders to recognise the role that financial institutions play in nature resilience, argue researchers from the University of Oxford. …

Central banks must address the financing of deforestation, a major contributor to climate change and nature loss which affect global market and price stability, say Maria Fernanda Contreras del Valle and Pablo Pacheco of WWF.