Climate change: a new challenge for financial stability?

Cooling tower

Since the Paris Agreement was adopted by most countries at the Paris Climate Change Conference (December 2015) to strengthen the global response to the threat of climate change, the debate about the contribution of central banks and financial regulators has grown significantly. This article: examines the appropriateness of central banks’ mandates in dealing with climate change risk; presents a classification of climate-related risks; assesses the scenarios for transition to a low-carbon economy

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