Research

Gaps in the understanding of climate risks create uncertainty over capital requirements and macroprudential policy. This Bank of England report states that firms and regulators must improve their climate risk management.

Researchers highlight the Bank of Albania’s progress in addressing climate change, and offer a roadmap to build the finance sector’s resilience and mitigate its exposure to climate risk.

In this paper published by the European Central Bank, economists analyse the efficacy of green quantitative easing and find that it would be most effective for reducing emissions if used aggressively and immediately.

The impacts of bottlenecks expected in the supply of metals critical for the low-carbon transition are explored in this paper, which also considers what this means for central banks’ core mandates.

This report reviews the European Central Bank’s first climate-related statistical indicators, which are designed to improve assessments of climate risks and green financing. …

This paper argues that macroprudential policy is needed to prevent climate risks becoming systemic risks, and proposes ways to increase the resilience of EU banks.

As large banks in the US are not fulfilling their public climate commitments, this report urges regulators to protect financial stability by holding banks accountable to credible transition plans.

This paper says climate risk modelling is improving, but is insufficient for capturing broader nature-related risks. The authors review nature-economy models and give guidance for improving their use in finance.

This working paper by the ECB says climate change may reduce natural interest, creating serious issues for monetary policymaking. The authors say an orderly transition would mitigate this, and central banks should address carbon biases to meet mandates.

This research report analyses the efforts of major global banks to address their climate-related risks and address climate change.

This report by Positive Money US analyses the role of “fossilflation” in causing inflation and provides policy recommendations to replace the existing framework that solely relies on the Federal Reserve.