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
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
In: Central Banking, Monetary Policy and Social Responsibility The author would like to thank Katie Kedward (UCL) and David Barmes... Read more
This Final Report provides the conclusions of the NGFS-INSPIRE Study Group on Biodiversity and Financial Stability on the scale of the threats from 'biodiversity-related risk' to the global financial system, reviews the actions that central banks, supervisors and other financial actors are already taking in response, identifies policy options for evaluating and mitigating financial risks arising from biodiversity loss and makes recommendations for near-term action. Read more
Chinese monetary and financial authorities have been among the pioneers in promoting green finance. This article investigates the use of... Read more
This article investigates the use of one specific monetary policy tool, namely window guidance, by the Peoples’ Bank of China (PBC) and the China Banking Regulatory Commission (CBRC) to encourage financial institutions to expand credit to sustainable activities and curb lending to heavy-polluting industries. Read more
This policy report sets out why central banks in the EU need to adopt net-zero strategies, and provides seven concrete recommendations for how they can. Read more
Investigating the use of the green monetary policy tool ‘window guidance’ in China, the authors draw lessons for the design of green finance policies for other countries that seek to enhance sustainable finance and mitigate climate change and related risks. Read more
Central Banks, including the Bank of England, the Banque de France, the European Central Bank and the United States Federal Reserve System, must each have an explicitly strategy for helping countries to achieve net-zero emissions, according to a report published today (15 March 2021) Read more
This report examines the role that central banks and financial supervisors could play in supporting the transition to net-zero greenhouse gas emissions, providing recommendations for action across seven areas of central bank and supervisory practice. Read more