Tag: Climate Risk

The Case for Climate Objectives in Central Banks’ Targeted Refinancing Operations

| 12 February 2021
Blog, Monetary | Tags: Central Banks, Climate Risk, Monetary Policy, Policy Coherence, Targeted Refinancing Lines
Central banks are making increasing use of targeted refinancing operations to pursue their mandates. However, so far none of them, with a few exceptions in developing economies, has aligned its targeting with the objective of a transition to a low-carbon economy. This must change. Refinancing ... continue reading

Strengthening Climate Risk Metrics – A Roadmap for 2021

23 February 2021 | Online | By Invitation
Monetary, Roundtables | Tags: Central Banks, Climate Risk, Financial Supervision, Monetary Policy Operations, Risk Metrics
Climate risks are financial risks. As such they must be incorporated into all investment decisions, including those by banks, investors and asset managers. They must also become an integral part of central banks’ monetary policy operations, as well as of financial supervision – both on ... continue reading

Climate Financial Risks: Assessing Convergence, Exploring Diversity

, and | 9 December 2020
Discussion Notes, Monetary | Tags: Climate Risk, Financial Supervision, Monetary Policy Operations, Risk Metrics
Climate risks are now fully recognized as financial risks by asset managers, investors, central banks, and financial supervisors. As a result, the integration of climate risk metrics into risk management processes is moving up agendas worldwide. In that context, a rapidly growing number of market ... continue reading

Central Banks Must Upgrade Their Risk Management

| 23 November 2020
Blog, Monetary | Tags: Central Banks, Climate Change, Climate Risk
The COVID-19 crisis is a stark reminder of how sharply asset values can shift. Amid a crashing demand for oil and gas, giant energy companies like BP, Chevron and Shell massively wrote down the value of their assets. And those that did not, like Exxon, ... continue reading

Central Banks Must Heed Their Own Warnings on Climate Risks

| 13 October 2020
Blog, Monetary | Tags: Asset Purchases, Central Banks, Climate Risk, Collateral Frameworks
The Central Banks and Supervisors Network for Greening the Financial System (NGFS), a group of more than 70 central banks and financial supervisors across the globe, has repeatedly highlighted that climate risks are financial risks. Its members have also continuously put a spotlight on the ... continue reading