Prudential Transition Plans
Prudential transition plans could offer a technical solution to address some of the challenges of integrating transition risks into the prudential framework, say climate finance experts.
Nature Based Currencies
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.
Facilitating the Transition to Net Zero and Institutional Change at the Bank of England
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.
Rising Temperatures, Falling Ratings
Researchers show that climate-induced sovereign downgrades will occur by 2030, and how climate-smart policies could curb the impact on debt-servicing costs.
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.
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.
Reforming the Multilateral Financial Architecture
Multilateral development finance is unable to meet present economic and sustainability challenges, says this paper which outlines reforms for development banks to bridge financing gaps in the global south.
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.
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