News

Biodiversity loss and financial stability, the effects of extreme weather on food prices, Bundesbank president Joachim Nagel on climate and monetary policy, shadow climate risk and more from this week in green central banking.

As the climate and ecological crises continue to accelerate, central banks have made slow progress in addressing their role as calls grow to stop the funding of the destruction of the natural world.

The Australian Prudential Regulation Authority has released final guidance on how financial institutions should manage climate-related financial risks, but has stopped short of imposing new regulatory requirements or obligations.

A major study by Positive Money and Green Central Banking reveals that G20 central bankers and financial supervisors remain stuck in data-gathering exercises and are failing to meaningfully respond to the climate and ecological crisis.

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.

The ECB has published a substantive review and analysis of climate change and monetary policy in the euro area, identifying potential problems with monetary policy transmission as a result of climate-related impacts.

The climate strategies of Luxembourg’s banks and investment funds are “timid, or even non-existent,” according to an analysis published in the Banque Centrale du Luxembourg’s latest Financial Stability Review.

Finance Watch’s Thierry Philipponnat on climate risk weighting in capital allocations, a new Chair of the Fed’s Financial Stability Climate Committee, Christine Lagarde on price stability, and more from this week in green central banking.

Global investors and policy makers are closely watching Australia’s climate change policies, according to Philip Lowe of the Reserve Bank of Australia.

A cross-party group of 43 British members of parliament have written to Bank of England (BoE) Governor Andrew Bailey encouraging him to work with the Treasury and other authorities to align UK finance with the UK government’s climate goals.

A new study has found that a substantial stranding of fossil fuel assets is necessary if the Paris Agreement target is to be met, prompting civil society organisations to call for risk weighting and other capital requirements to be introduced …