Eurozone needs macro-prudential tools for climate change, says ECB
Regulators are struggling to address climate change risks, joint ECB-ESRB report finds
Eurozone countries need macro-prudential policies to address the financial risks of climate change, a joint report argues.
Existing prudential approaches to financial risk struggle to cope with climate change, says the report from the European Central Bank and the European Systemic Risk Board. Devising policies to deal with climate change means dealing with complex scenarios, extended time horizons and irreversible outcomes, the report notes.
“High discount rates might accompany such
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