Research
Climate Defaults and Financial Adaptation
A new model of climate-induced cyclones shows they cause welfare losses and permanent consumption drops in emerging economies. Financial adaptation instruments like insurance only partially offset losses.
NGFS Long-term Scenarios for Central Banks and Supervisors – Phase 5
Latest NGFS scenarios show climate-induced economic losses up to four times greater than under previous modelling. Urgent action is needed as sluggish progress risks increasingly disruptive transition.
The Treatment Of Physical Climate Risks By Central Banks
This report analyses challenges, progress and future strategies for managing physical risks in India. Researchers advocate for a phased and proportional approach to mandatory standards to overcome capacity issues.
Latest Research
The Climate Change Risk Reduction Trap
Kuwait’s current economic diversification plans may inadvertently increase domestic vulnerability to climate risks, warn researchers.
Integrating Climate Adaptation and Natural Capital Into Macroeconomic Frameworks and Debt Sustainability
The IMF’s current macroeconomic frameworks are leading to misaligned policy advice for the global south. This paper outlines the technical adjustments needed to address this.
Net Zero Finance Analysis
A new tracker evaluates banks’ net-zero pledges, addressing accountability gaps and enabling comparisons to identify best practices in climate commitments.
Acute Physical Impacts From Climate Change and Monetary Policy
Regulators are struggling to model the escalating impact climate is having on prices. This NGFS framework offers central banks tools needed to begin addressing this gap.
Climate-Related Infrastructure Failure Has Complex and Far-reaching Economic Impacts
Financial risk assessments underestimate climate impacts on infrastructure so this paper proposes a new methodology for improving evaluation of cascading impacts.
The Globalization of Climate Change
Climate economic models widely underestimate physical risks by ignoring global supply chain interconnections, which can potentially amplify GDP losses up to 30 times.
Islamic Finance As a Driver for Enhancing Economic Sustainability and Innovation in the GCC
Reliance on oil revenues exposes Gulf states to serious risk, so this research suggests green Islamic finance provides a “viable” way to diversify the economy.
Green Monetary Policy to Combat Climate Change
Climate change threatens price stability, this paper explains how a green monetary framework, including selective credit controls, can reduce emissions and protect prices.
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Most Read
- NGFS Long-term Scenarios for Central Banks and Supervisors – Phase 5
- The Green Swan: Central Banking and Financial Stability in the Age of Climate Change
- Islamic Finance As a Driver for Enhancing Economic Sustainability and Innovation in the GCC
- The ESG Washing in Banks Evidence from the Syndicated Loan Market
- Crisk: Measuring the Climate Risk Exposure of the Financial System
Other Resources
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Sustainable Financial Regulations & Central Bank Activities (Susreg)WWF tool assessing how climate, environmental and social issues are being adopted
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Green Monetary & Financial Policies TrackerAnalysis of the monetary and financial policy landscape from E-axes
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Literature on Climate, Macroeconomics & Finance TrackerE-axes tool to explore published research
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Green Finance PlatformGFP provides a range of tools, research and case studies