climate change

Climate and nature-related risks are significant financial risks. Frank Elderson argues that they therefore fall within the respective mandates of central banks and supervisors – to preserve price stability...

Extreme weather events are bringing devastating consequences for an increasing number of people. Senne Aerts, Livio Stracca and Agnieszka Trzcinska highlight the uncertainties and the importance of continued...

Human-induced climate change is making disasters more frequent and more intense. Agnes Norris Keiller and John Van Reenen explore how management practices shape the impact of environmental shocks on f...

The need to mitigate climate change has never been more urgent. Stéphane Dees Caterina Seghini discuss balancing climate mitigation and fiscal sustainability

Meeting Europe’s 2030 climate targets will require massive clean-electricity investment. Conall Heussaff and Georg Zachmann discuss the balance between efficient electricity system operation, investment...

Europe needs to decarbonise. Ugnė Keliauskaitė, Ben McWilliams, Giovanni Sgaravatti and Simone Tagliapietra discuss the challenges of meeting EPBD targets and introducing ETS2 smoothly

The Inflation Reduction Act has sparked concern in the EU. Salvador Barrios, Jonathan Pycroft, Andrzej Stasio and Daniel Stöhlker argue that the EU’s own green funding initiatives can compete with the...

Stringent climate policies are needed to reach temperature targets. Lucas Bretschger argues that theory-based scenarios are a powerful tool to induce efficient decarbonisation policies

Carbon pricing initiatives have mushroomed in the last two decades. Daniel Santabárbara and Marta Suárez-Varela evaluate the impact of emissions trading and carbon tax on inflation

Giovanni Sgaravatti, Simone Tagliapietra and Cecilia Trasi argue that the EU’s green reach strategy will need to use a broad range of levers to build equitable partnerships that will help partners make...

Failure to meet the Paris climate goals poses economic challenges that have an impact on central banks’ work, argues Frank Elderson. To avoid long-term policy mistakes, policymakers must address the resulting...

Simon Voigts and Anne-Charlotte Paret assess emissions reduction, fiscal costs and the macro effects of the Inflation Reduction Act

Climate change is a collective action problem that requires substantial international cooperation. Christofer Schroeder and Livio Stracca present new evidence that carbon taxes are undermined by ‘leak...

The EU has to manage the climate and digital transitions and achieve greater economic resilience. Maria Demertzis, David Pinkus and Nina Ruer discuss the potential EU approach to funding strategic obj...

Ben McWilliams, Giovanni Sgaravatti, Simone Tagliapietra and Georg Zachmann outline the trade-offs European governments must confront to meet the challenge of decarbonising their countries’ economies

The move to a net zero future entails profound changes for societies and economies. Ivana Popovic, Alexandre Köberle and Michael Wilkins discuss a just transition with a particular focus on the financial...

Climate change will have a significant impact on our economies and financial systems. Ravi Menon discusses the NGFS’ efforts to support a successful transition towards net zero

Monetary policy in the climate and nature crises. Frank Elderson considers more frequent climate and nature events and their greater impact on the economy

Giovanni Sgaravatti writes that there are three possible policy pathways that could lead to improvement and systemic change in the aviation and maritime sectors

Sabine Mauderer argues that reducing uncertainty about climate change will help us to embrace the opportunities of the green transition

Niclas Poitiers argues that the US Inflation Reduction Act shows that massive subsidies are not leading to massive manufacturing job creation

Dirk Schoenmaker and Rens van Tilburg argue that closing the climate investment gap can bring down the high cost of climate finance to acceptable levels

Carbon pricing policies are critical tools to mitigate the effects of climate change. Diego Känzig and Maximilian Konradt examine the impact of European carbon pricing policies, contrasting the common...

The EU is committed to achieve climate neutrality by 2050. Justus Böning, Virginia di Nino and Till Folger argue that to meet this aim carbon leakage at the border must be stopped

Regulatory efforts to control carbon emissions are intensifying around the world. Maria Cecilia Bustamante and Francesca Zucchi examine the effects of carbon pricing mechanisms on businesses

Weather-related disasters are increasing in frequency and intensity. Fabrizio Ferriani, Andrea Gazzani and Filippo Natoli investigate whether these events can shape international investors’ portfolio...

Pascal Saint-Amans argues that emissions from international shipping are the most realistic target for taxes to pay for climate spending in developing countries

Henk Jan Reinders, Dirk Schoenmaker and Mathijs Van Dijk review current climate risk stress test methods and identify new approaches

Simone Tagliapietra, Reinhilde Veugelers and Jeromin Zettelmeyer argue that the EU should reboot the proposal and refocus its objectives, improve its governance and add financial incentives to ensure...

Abeliansky et al discuss the two side effects of automation – increased inequality and a rise in carbon emissions – and propose a policy response to deal with both problems

Carbon pricing is a central instrument in the EU’s fight against climate change. Claus Brand, Günter Coenen, John Hutchinson and Arthur Saint Guilhem use macroeconomic models examine what higher prices...

The pace of innovation is not aligned with carbon neutrality. Mario Cervantes, Chiara Criscuolo, Antoine Dechezleprêtre and Dirk Pilat argue for policies to encourage the adoption of green innovation

Degrowth isn’t the same as a recession – it’s an alternative to growing the economy forever. Katharina Richter discusses the benefits

Christopher Waller explores financial risks associated with climate change, and cast doubt on the need for special focus on how banks are preparing for climate change risks

Berg et al argue that it would be welfare-enhancing if policy changes were to follow a predictable longer-term path, and suggest a role for financial regulation in the transition

Sarah Breeden reflects that we haven’t yet reached the tipping point in an unavoidably uncertain transition. Governments, business, finance and central banks all have unique roles to play to get us th...

Alexander Lehmann says investors need tools to evaluate whether climate transition plans are credible

David Kleimann argues that environmental subsidies could be justified when emissions taxation is not feasible or is insufficient due to political economy constraints

Klaas Knot considers three structural shifts in the global economy: NBFI, cryptoassets and climate change, which affect the resilience of the global financial system

Bruno Conte, Klaus Desmet and Esteban Rossi-Hansberg argue that it is time to take a serious look at carbon taxes as they are less costly than you thought

Isabel Schnabel argues that unprecedented investments are needed in technical innovations and renewable energy to protect our planet

Alex Edmans argues that ESG shouldn’t be put on a pedestal compared to other intangible assets that affect both financial and social value

Ulrich Volz and Dirk Schoenmaker discuss the climate investment and SDG financing gap

The EU has adopted the European Climate Law. Frank Elderson considers how the European Central Bank will be affected

Helen Souza discusses Bermuda’s push to become the global climate risk finance capital

High-quality, reliable, and comparable gauges are lacking. Charlotte Gardes-Landolfini and Fabio Natalucci on how to close the data deficit

The BoE recently tested the UK’s largest banks and insurers on how prepared they are for financial risks caused by climate change. Sam Woods reviews the results

Climate finance is treated as a form of aid support. Saliem Fakir argues that a shift is needed to investment support that would economically transform Africa

Martijn Groot considers the reasons why ESG data integration is the key for finance firms

Jon Cunliffe reflects on the key lessons he has learnt about financial stability and highlights longer-term issues such as climate change and crypto

Andrew Bailey sets out the work the Bank of England is doing on climate change to ensure firms address climate risks, using the power of disclosure to incentivise change

To accelerate the low-carbon transition in capital markets investors need trustworthy sustainability data. Alexander Lehmann says regulators should remain alert to misconduct in capital markets

IFCs facilitate the efficient flow of capital required by the global economy. Phil Graham argues that they are ready to support the transition to sustainable investing

René Karsenti and Apostolos Thomadakis argue that financing the energy transition requires a comprehensive shift in how the financial system works

Klaas Lenaerts, Simone Tagliapietra and Guntram Wolff explore whether decarbonisation and economic growth are compatible to reach net zero by 2050

Alexander Lehmann says the proposed EU green bond standard will be less prone to ‘greenwashing’, and the widest possible set of issuers and jurisdictions should be encouraged to use the standard

Andrew Bailey talks about the work central banks have done on climate change, and how it will need to evolve

Christine Lagarde considers the European Union’s transition towards a sustainable economy that will be backed by the growth of sustainable finance

The EU has announced reaching carbon neutrality by 2050 as the key target of its Green Deal strategy. Christoph Schmidt et al. argue that the EU should consider a border carbon adjustment mechanism only...

The ECB will contribute within its mandate to tackling climate change, acting in tandem with those responsible for climate policy, says Christine Lagarde

The EU needs a liquid market in bonds to fund the recovery programme. Alexander Lehmann argues green bonds would complicate matters

The COVID crisis has created economic calamity. Kristalina Georgieva argues that now is the time to build a more sustainable and equitable world

Alexander Lehman and Mark Plant discuss low-carbon transition challenges and consider the EU agenda for coordinating with emerging markets

Clemens Fuest and Jean Pisani-Ferry consider the EU budget, which has to be reassessed in light of the Next Generation EU programme

Sarah Breeden shares lessons we have learned from designing and applying climate scenarios, as well as some thoughts on their future, including the vital contribution research needs to make