Research

This cross-country evaluation estimates the aggregate impact of natural disasters on banking stability and finds persistent adverse effects on banking stability. …

In this paper, researchers present various measures of biodiversity risk exposure which can close research gaps and be used to analyse the economic costs of nature loss.

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. …

Weather shocks have asymmetric and non-linear impacts on inflation in the eurozone that introduce significant price volatility, according to research from the European Central Bank.

Given the material and systemic risks posed by climate change, there is a strong case for adjusting macroprudential policies, according to this FSI research. …

The near-term macroeconomic costs of decarbonisation are dwarfed by the costs of inaction and will remain manageable if policies are implemented gradually, according to the IMF.

Colombia was the first country in the Americas to develop a green taxonomy, and this WWF report says it can be used as a regional blueprint. The authors also give advice to countries to design interoperable, fit-for-purpose taxonomies.

Deutsche Bank research highlights the growing pressure on banks to improve their climate risk management and disclosure frameworks, and argues that initial stress tests are “just the beginning”.

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.

The ECB says climate disclosures show that its investment strategy is “bearing fruit” on decarbonisation, but that ambitious action is needed as monetary policy tightening reduces its opportunities to tilt its portfolio.

Norwegian businesses say that climate related conditions are affecting their operations and raising costs, but the majority also report positive overall effects of transition due to growth in investment and opportunity.