Research

This paper reviews monetary and macroprudential tools, such as targeted green refinancing, that the ECB can use to speed up the green transition while maintaining price stability.

Widespread inaccuracies in flood risk mapping may result in inadequate insurance coverage with banks less likely to lend into areas with inaccurate maps, say economists.

The OECD has launched a methodological supervisory framework to help central banks assess how nature and biodiversity-related risks affect the financial system.

Climate litigation is a rapidly growing source of risk for financial institutions, but the supervisory framework for addressing this is only at an “early stage of development”, a NGFS report says. …

As appetite for sustainable ocean-themed bonds grows, this guide provides a roadmap for issuers to incorporate blue bonds into their green finance strategies.

The TPI’s first banking sector assessment finds disclosures are still “partial and selective” and banks do not include all on and off balance sheet activities in net zero commitments.

Finance Watch calls for economic climate models that do not mislead, scenario analyses that prepare the market, and a new loan-to-value macroprudential tool. …

This paper by the Monetary Authority of Singapore considers how high-integrity transition credits can be used to accelerate the phaseout of coal power plants in Asia. …

The UK’s transition plan taskforce has released its final disclosure framework which sets out “good practice for robust and credible transition plan disclosures”.

Climate change and the actions taken to tackle it will cause structural changes to the economy with “profound effects” on potential output, says this ECB report.

The ECB’s green speeches have a “substantial and statistically significant impact” on stock returns and can be used to further green goals, finds this paper by senior officials at Hungary’s central bank.