Research Archive - Green Central Banking

Research| September 28, 2023

Nature-Related Financial Risks

A Conceptual Framework to Guide Action by Central Banks and Supervisors

The Network for Greening the Financial System has released a conceptual framework for assessing nature related financial risks which provides a “starting point for analysis and action”. …

Written by Network for Greening the Financial System

Research| September 12, 2023

Facilitating the Transition to Net Zero and Institutional Change at the Bank of England

Perceptions of the Environmental Mandate and its Policy Implications within the British State

The Bank of England’s new environmental remit has not catalysed the bold change to monetary policy needed to meet net-zero targets, say political economists in this paper.

Written by The British Journal of Politics and International Relations

Large ocean waves crashing against a row of houses

Research| August 8, 2023

Crisk: Measuring the Climate Risk Exposure of the Financial System

Economists have developed a market-based measure of the potential effect of transition risk on banks’ capitalisation which can be used to explore ‘severe but plausible’ climate scenarios.

Written by Federal Reserve Bank of New York

A woman in a red sari standing at the top of a wooden ladder, working on a solar panel, green hills in the background

Research| July 5, 2023

Inclusive Green Finance

A New Agenda for Central Banks and Financial Supervisors

This report presents actionable policies for central banks to implement a “virtuous cycle” of inclusive green finance which promotes economic resilience and a just transition.

Written by LSE Grantham Institute & Inspire

A weather map of the western United States, coloured differnt shades of red, dark red and purple to indicate different temperatures ranging from 94F to 124F

Research| June 23, 2023

Feeling the Heat

Climate Risks and the Cost of Sovereign Borrowing

Climate change is placing fiscal health under threat, say macroeconomic researchers, and policymakers must ramp up investment in climate change resilience to avoid adverse effects on financial stability.

Written by Asian Development Bank Institute

Flooding in Valkenburg aan de Geul, Netherlands in July 2021

Research| June 7, 2023

Policy Options to Reduce the Climate Insurance Protection Gap

Reducing the climate insurance gap is key to curbing the economic losses caused by climate catastrophes but only 25% of losses are insured in the EU, according to this report.

Written by European Central Bank

A mechanical digger operating at an open coal face

Research| April 22, 2023

Banking on Climate Chaos 2023

Fossil Fuel Finance Report

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.

Written by Rainforest Action Network and others

Flooded residential house in Florida, USA

Research| April 6, 2023

Climate Change and Economic Activity: Evidence From US States

Researchers provide evidence for the long-lasting adverse impacts of climate change in the US on state and sector specific economic performance indicators.

Written by Oxford Open Economics

Research| November 17, 2022

Net-Zero Transition Plans

A Supervisory Playbook for Prudential Authorities

This report discusses how central banks and supervisors can use prudential transition plans to assess and address climate and environmental risks.

Written by LSE Grantham Institute

Two men work beneath a ground-mounted solar panel surrounded by brown hills in Afghanistan

Research| October 14, 2022

Greening Capital Requirements

This paper makes the case for differentiated capital requirements as a tool to green the financial system and reduce the buildup of physical environmental risks.

Written by Inspire