central banks

This paper explores how transition plans could offer a technical solution to the challenge of integrating transition risks into the prudential framework. Read more

This commentary examines the ‘why, how and what’ of risks to the real economy and financial system deriving from damage to ecosystem services and habitats. Read more

Central banks and financial supervisors are essential to securing finance for a low-emissions, resilient world. This commentary explores how to make progress on this goal, an important part of the Paris Agreement. Read more

This paper explores how central banks can design green credit policy to bring down inflation while supporting the low-carbon transition. Read more

This paper shows that, through an integrated inclusive green finance (IGF) approach, central banks and financial supervisors can enable banks and supervisors to foster a just transition to an environmentally sustainable economy and avoid potential adverse effects on economically vulnerable groups. Read more

This paper investigates the climate impact of central bank refinancing operations, with a focus on the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTRO) III programme. Read more

This policy insight presents an initial conceptual framework on the application of climate scenario analysis and associated design requirements, focusing on the need for a clear purpose. Read more

A new global framework for the protection of nature was adopted at COP15, with material targets for 2030. This commentary outlines their particular relevance for the financial sector and its efforts to halt nature loss. Read more

In this paper the authors use Credit Default Swap (CDS) spreads to construct a forward-looking, market-implied carbon risk factor and study how, where and when carbon risk affects firms’ creditworthiness by examining whether firms’ exposure to carbon risk is reflected in the market prices of their CDS contracts. Read more

This commentary explains a new way to measure how the scope and speed of the economic transformation needed to mitigate climate change and the associated credit risk vary across sectors, jurisdictions and time. Read more