Research Archive

A satellite image of the Ganges delta, with light coloured sediment draining from the rivers into the dark Bay of Bengal
Research| September 14, 2023

Nature Based Currencies

Integrating Natural Capital in Advanced Monetary Systems

In this white paper, digital finance experts explore how central banks could design a nature-based digital currency that supports economic stability, human wellbeing and planetary health.

Written by Open Earth
A person looks down from a balcony at the flooded street below. The upper halves of two cars emerge from the light brown water
Research| August 22, 2023

Climate-related Systemic Risks and Macroprudential Policy

Macroprudential policy is a ‘natural’ starting point to address systemic climate risks, say economists, and systemic risk buffers and exposure limits are two promising options.

Written by LSE Grantham Institute & Inspire
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 worker in hard hat and fluorescent jackets working on a laptop balanced on a car bonnet. They are looking at a wind turbine in the distance
Research| July 26, 2023

Climate Risk Stress Tests Underestimate Potential Financial Sector Losses

Climate stress tests may significantly underestimate losses and should incorporate “severe but plausible” scenarios such as “green swan” and Minsky-type events, say researchers. …

Written by Centre for Economic Policy Research
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 sea turtle seen from above, swimming through clear azure waters
Research| May 23, 2023

Integrating Nature Into Debt Sustainability Analysis

Multilateral financial organisations would be making a “grave omission” if they fail to include biodiversity-related risks in debt sustainability analyses, according to this report. …

Written by Finance for Biodiversity Initiative & SOAS Centre for Sustainable Finance
Blackened, leafless trees stand surrounded by ash following a wildfire
Research| February 23, 2023

Macroprudential Policies and Climate Risks

This paper argues that macroprudential policy is needed to prevent climate risks becoming systemic risks, and proposes ways to increase the resilience of EU banks.

Written by European Banking Institute
An aerial view of a conifer forest which has been partially cut down
Research| February 10, 2023

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.

Written by The Inspire Research Network
Dried, shrivelled maize plants against a blue sky
Research| September 1, 2022

Economic Impacts of Climate Change

Exploring Short-term Climate-related Shocks with Macroeconomic Models

Based on input from 48 global banks and investors, this report introduces three new climate-driven macroeconomic shock scenarios, exploring their economic implications using a commonly used short-term global econometric model.

Written by UNEP FI
Four adults and a child stand in floodwaters in floodwaters in a Bangladeshi village
Research| September 1, 2022

Acute Climate Risks in the Financial System

Examining the Utility of Climate Model Projections

This paper finds that top-down climate risk approaches, such as those used by the NGFS, are of limited value at the granular scale relevant to the financial sector.

Written by A J Pitman et al
A satellite image showing a large hurricane to the east of the Gulf of Mexico
Research| August 10, 2022

The Macroprudential Challenge of Climate Change

This joint ECB/ESRB report examines how climate shocks can affect the European financial system, identifies transmission channels and amplifiers of climate risk and finds significant threats to European financial stability.

Written by European Central Bank & European Systemic Risk Board

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