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
central banks
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
This paper explores current models and scenarios for analysing nature-related financial risks. It identifies the key methodological considerations and requirements if nature assessments are to provide useful guidance to the financial sector. Read more
This article reports on how the US Federal Reserve and European Central Bank have differed in their responses to tackling... Read more
This paper sets out why it is important for central banks and supervisors to actively support the just transition, suggests a three-step roadmap for achieving this goal, and explores policy options for aligning monetary policy operations and financial regulation with the just transition. Read more
The impacts of biodiversity loss call for urgent and transformative changes to economic and financial systems. This paper discusses the need to extend the scope of central banks’ approach to the environmental crisis. Read more
In this article for the Green European Journal Danae Kyriakopoulou argues that, as central banks start to change tack after years of loose monetary policy, using the levers of the financial system to fight inflation risks cutting climate investment just as we need it most. Read more
This video profiles why central banks are taking action on climate and nature. It includes presentations by Nick Robins and representatives of central banks from Chile, Malaysia and Zambia. Read more
This book chapter discusses the role that central banks and financial supervisors (CBFSs) can play in scaling up sustainable finance and investment. Read more