Research Archive
Climate-related Risks and the Regulatory Capital Framework
Gaps in the understanding of climate risks create uncertainty over capital requirements and macroprudential policy. This Bank of England report states that firms and regulators must improve their climate risk management.
Toward a Green Economy
In this paper published by the European Central Bank, economists analyse the efficacy of green quantitative easing and find that it would be most effective for reducing emissions if used aggressively and immediately.
The Stumbling Block in ‘the Race of Our Lives’
The impacts of bottlenecks expected in the supply of metals critical for the low-carbon transition are explored in this paper, which also considers what this means for central banks’ core mandates.
Supervising the Transition
As large banks in the US are not fulfilling their public climate commitments, this report urges regulators to protect financial stability by holding banks accountable to credible transition plans.
Building Blocks for Central Banks to Develop Nature Scenarios
This paper says climate risk modelling is improving, but is insufficient for capturing broader nature-related risks. The authors review nature-economy models and give guidance for improving their use in finance.
The Effects of Climate Change on the Natural Rate of Interest
This working paper by the ECB says climate change may reduce natural interest, creating serious issues for monetary policymaking. The authors say an orderly transition would mitigate this, and central banks should address carbon biases to meet mandates.
Tackling Fossilflation
This report by Positive Money US analyses the role of “fossilflation” in causing inflation and provides policy recommendations to replace the existing framework that solely relies on the Federal Reserve.
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