Research Archive
Why the Fed and ECB Parted Ways on Climate Change
According to this study, a supportive domestic environment enabled the European Central Bank to emerge as a leader in climate policy, while the Federal Reserve lags behind.
Macroprudential Policies for Addressing Climate-related Financial Risks
Given the material and systemic risks posed by climate change, there is a strong case for adjusting macroprudential policies, according to this FSI research. …
Banking on Climate Chaos 2023
The latest edition of the annual report shows that $5.5tn has been provided in fossil fuel financing since 2016, with the Royal Bank of Canada topping the list in 2022.
Ten Financial Actors Can Accelerate a Transition Away from Fossil Fuels
This study examines the equity ownership of the world’s unburnable fossil fuel reserves, finding that just ten organisations own nearly half of all reserves and have a disproportionate influence over the fossil fuel industry.
Assessing Financial Risks from Physical Climate Shocks : A Framework for Scenario Generation
Scenarios developed to assess the financial risks from physical climatic events do not fully capture such shocks, finds this World Bank paper from three distinguished sustainable finance academics.
Green Mortgages, EU Taxonomy and Environment Risk Weighted Assets: A Key Link for the Transition
This original and timely paper introduces an environment risk weighted assets tool that financial regulators could use almost immediately to help banks green their portfolios by lending to households to reduce energy use and emissions.
Identifying, Managing and Disclosing Climate-related Financial Risks: Options for the Reserve Bank of India
This groundbreaking joint report quantifies the extent of lending by Indian banks to fossil fuel assets and examines the risks to the Indian financial system.
Aligning Canadian Finance with Climate Commitments
This white paper from the office of Canadian Senator Rosa Galvez examines the fossil fuel funding of Canadian financial institutions and public authorities and the resulting systemic risks to financial stability. …
Preventing a ‘Climate Minsky Moment’: Environmental Financial Risks and Prudential Exposure Limits
Central banks can avoid a ‘climate Minsky moment’ by placing soft limits on banks’ exposures to transition-sensitive sectors, according to LSE’s Grantham Institute.
Fossil fuel: the new sub-primes? How funding the climate crisis can lead to a financial crisis
This assessment of the climate-related financial risks facing the 11 largest banks in the eurozone finds that they are highly exposed to a collapse in fossil fuel asset values, with potential contagion effects threatening financial stability. Comparing fossil fuel assets …
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