Monetary Policy and Climate Change – Distinguishing Between a Protective and a Proactive Agenda

Timothy Lane | 4 June 2024
Monetary, Policy Briefs | Tags: Central Banks, Climate Risks, Governing Finance

Central banks in many economies are striving to take account of climate change in their policies and operations. In this context, the important distinction between a protective agenda under which central banks take climate considerations into account in pursuing their core mandate and protecting their balance sheet against climate-related financial risks, versus a proactive agenda under which they pursue climate objectives as an additional goal is often blurred. This paper dissects the differences and calls on central banks to take action under a protective agenda, while treading carefully, if at all, into proactive territory.

What Should Bank Supervisors Do About Climate Risks?

Mark E. Levonian | 4 June 2024
Monetary, Policy Briefs | Tags: Central Banks, Climate Risks, Financial Supervision, Governing Finance
This paper considers the role of bank supervisory authorities with respect to climate change. The emerging consensus is that financial supervisors and regulators must address climate-related risks to banks and... continue reading

Aligning Sovereign Bond Markets with the Net Zero Transition: Key Findings and Debate

29 April 2024 | Online | Co-hosted with GRI-LSE
Monetary, Panel | Tags: Central Banks, Climate Risks, Debt, Financial Supervision
To celebrate the launch of a flagship policy report discussing the role of central banks in aligning sovereign bond markets with the net zero transition, the Grantham Research Institute at... continue reading

Climate-Related Systemic Risks and Macroprudential Policy

Paul Hiebert and Pierre Monnin | 9 August 2023
Monetary, Policy Briefs | Tags: Climate Risks, Financial Stability, Financial Supervision, Macroprudential Policy, Systemic Risks
Central banks and financial supervisors must rapidly develop sound risk management practices adapted to a context in which policy decisions rely on imperfect data and high uncertainty.... continue reading

Governing Finance and Climate Change – The Role of Central Banks and Financial Supervisors in Addressing Climate-Related Financial Risks

13 April 2023 | Washington, D.C., United States
Monetary, Panel | Tags: Central Banks, Climate Risks, Financial Supervision
The Institute for International Economic Policy (IIEP) at GWU, in partnership with the Council on Economic Policies, recently hosted a morning event on Governing Finance and Climate Change in Washington.... continue reading

Building Blocks for Central Banks to Develop Nature Scenarios

Elena Almeida, Chiara Colesanti Senni and Nepomuk Dunz | 27 January 2023
Monetary, Policy Briefs | Tags: Central Banks, Climate Risk, Environment, Financial Stability
In reviewing a selection of models currently used in economic and nature loss assessments, five key issues emerge for model and scenario development.... continue reading

Is the Current Macroprudential Framework Fit for Climate Systemic Risk?

Pierre Monnin | 13 November 2022
Monetary, Blog | Tags: Central Banks, Climate Risks, Financial Stability, Macroprudential Policy, Systemic Risks
Climate change and the transition to a low-carbon economy have a clear systemic dimension, and they potentially pose a systemic risk for the financial sector. This has been highlighted by... continue reading

Timothy Lane

Timothy Lane served as Deputy Governor of the Bank of Canada from 2009 through 2022. He participated in monetary policy decisions and held responsibilities that spanned the Bank’s core economic and financial policy functions, including work related to the global economy and financial markets. He led the Bank’s work on payments modernization, digital finance, and the exploration of a potential central bank digital currency (CBDC). He served as the Bank’s G7 and G20 Deputy, participated in several international committees, and led international working groups on a number of financial system issues. Prior to joining the Bank, he served for 20 years on the staff of the International Monetary Fund (IMF). During that period, he worked on a wide range of issues and worked with a number of countries, including both advanced and emerging market economies. He spent 2004-05 on leave from the IMF as a Visiting Fellow at the University of Oxford. Before joining the IMF, he served as Assistant Professor of Economics at Michigan State University and at the University of Iowa. He has published research on monetary policy and on a wide variety of other topics related to economic and financial policy. He received a BA from Carleton University and a MA and PhD from the University of Western Ontario.