Greening Monetary Policy: Evidence from the People’s Bank of China
The PBoC’s decision to accept green bonds as collateral resulted in a significant and persistent reduction to the yields of those bonds, finds this paper from the Banque de France.
Feeling the Heat: Extreme Temperatures and Price Stability
This ECB paper examines the impact of temperature shocks on prices across 48 countries and finds that temperature plays a “non-negligible role” in driving medium-term price developments. It concludes that “climate change matters for price stability”.
The Effects of Natural Disasters on Price Stability in the Euro Area
This discussion paper from the German Institute for Economic Research examines the impact of natural disasters on price stability in the euro area, and finds significant positive effects on overall headline inflation but diverging results at the sub-index level.
A Silver Bullet Against Green Swans
A European Commission review of the regulatory framework on capital requirements for banks and insurance companies offers an opportunity for a “quick fix” to address climate-related risks to the financial system, finds this ground-breaking Finance Watch report.
Unlocking the Renovation Wave
This article from Positive Money Europe examines the financial barriers to energy-saving home renovations in the EU and proposes a version of the ECB’s successful TLTRO programme to incentivise banks to lend for energy efficiency projects.
The Price of Hesitation: How the Climate Crisis Threatens Price Stability and What the ECB Must Do about It
This paper reveals how the ability of the European Central Bank to control inflation may be significantly undermined if the world passes the 1.5ºC warming threshold.
Climate Change and Monetary Policy in the Euro Area
This report from the European Central Bank analyses the implications of climate change for the conduct of monetary policy in the euro area. It is one of a number of background papers to the 2021 strategy review, which incorporated climate …
Unused Tools: How Central Banks Are Fuelling the Climate Crisis
Central banks could play a critical role in catalysing the rapid shift of financial flows away from fossil fuels, but have instead been tinkering at the edges, according to Oil Change International.
Economic Impacts of Tipping Points in the Climate System
Climate tipping points are one of the principal reasons for concern about climate change but have mostly been ignored by climate economists until recently, this report observes.
NGFS Climate Scenarios: pushing financial players into taking a risky gamble
This Reclaim Finance report assesses the credibility of the NGFS’ latest climate scenarios for central banks and supervisors, finding them heavily reliant on unproven carbon capture and storage at scale and on the unsustainable use of biomass for energy production.
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