ECB examines climate-related capital requirements
The European Central Bank is examining a climate risk buffer requirement and climate risk weight policies in response to unaddressed systemic climate risk to the banking and financial sectors, reveals the latest issue of the central bank’s Macroprudential Bulletin.
FSOC climate report recognises systemic risk but avoids firm timelines
The report avoids recommending firm timelines for regulators to take action, and includes no consideration of some of the bolder interventions taken by regulators in other G20 economies.
Central banks discuss macrofinancial impacts of climate change
A joint Bank of Italy and Bank of England research conference on the macrofinancial impacts of climate change has concluded with a call by BoI governor Ignazio Visco for international collaboration in the runup to Cop26.
ECB releases bank climate stress test methodology
The ECB has published the methodology of its upcoming climate risk stress test of Eurosystem banks, requiring lenders to assess their exposure to climate risks and evaluate their response to common transition scenarios.
Weekly roundup: Biden’s climate risk roadmap and RBA divestment fears
Australia’s climate inaction scaring investors, White House releases roadmap on climate risk ahead of FSOC report, Bank of Mauritius launches climate change centre and more from this week in green central banking.
World Energy Outlook report shows banks at odds with IEA over net-zero plans
Leading banks have resisted agreeing to end financing of all new fossil fuel exploration this year, despite an IEA warning that a ban is necessary to reach net zero by 2050.
Central banks should support governments on biodiversity loss, says NGFS
A new report from the Network for Greening the Financial System finds growing evidence that biodiversity loss could have significant economic and financial implications.
Weekly roundup: Fed planning climate stress tests and Carney under fire
Fed’s Brainard says climate stress tests on the way for US banks, Carney under fire over COP26 ‘greenwashing’, G20 central banks urged to green refinancing operations and more from this week in green central banking.
BoJ showcases climate loans scheme at TCFD summit
The Bank of Japan is among a growing number of central banks which are deploying interventionist policies to align bank lending with the low-carbon transition, rather than relying solely on disclosures to effect market discipline.
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