How does climate change affect financial stability? Why isn’t the ECB buying more green bonds? How can banks better prepare for climate-related risks? Our host Michael Steen discusses these questions with expert guests Fatima Pires, Madelaine Roos and Patrick Amis.
The views expressed are those of the speakers and not necessarily those of the European Central Bank.
Published on 3 March 2020; recorded on 5, 6 and 13 February 2020.
In this episode:
(02:08) Climate change and financial stability
The risks emerging from climate change (physical and transition risks), their effects on financial stability, how stress tests help spot these risks and why international cooperation is key.
(13:22) Climate change and the green market
Why we don’t just buy more green bonds, how a taxonomy can help identify green assets and what the ECB is doing to make its own funds more sustainable.
(20:47) Climate change and banks
The role of banks in the shift to a more sustainable economy, how supervisors can help banks prepare for risks stemming from climate change and why transparency is important to better understand climate risks.
Climate change and the ECB
https://www.ecb.europa.eu/ecb/orga/climate/html/index.en.html
Speech (27 February 2020): C Lagarde, President of the ECB: Climate change and the financial sector
https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200227_1~5eac0ce39a.en.html
Research Bulletin: Finance and decarbonisation: why equity markets do it better
https://www.ecb.europa.eu/pub/economic-research/resbull/2019/html/ecb.rb191127~79fa1d3b70.en.html
Working Paper: Finance and carbon emissions
\https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2318~44719344e8.en.pdf
Financial Stability Review: Climate change and financial stability
https://www.ecb.europa.eu/pub/financial-stability/fsr/special/html/ecb.fsrart201905_1~47cf778cc1.en.html
Working Paper: The Green Golden Rule: habit and anticipation of future consumption
https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2247~72dc51ddd8.en.pdf
Economic Bulletin: Purchases of green bonds under the Eurosystem’s asset purchase programme
https://www.ecb.europa.eu/pub/economic-bulletin/focus/2018/html/ecb.ebbox201807_01.en.html
Working Paper: The impact of disasters on inflation
https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1982.en.pdf
Speech (2018): B Cœuré, Member of the Executive Board of the ECB: Monetary policy and climate change
https://www.ecb.europa.eu/press/key/date/2018/html/ecb.sp181108.en.html
ECB Press Conference Q&A (23 January 2020)
https://www.ecb.europa.eu/press/pressconf/2020/html/ecb.is200123~0bc778277b.en.html
European Central Bank website
https://www.ecb.europa.eu/home/html/index.en.html
The views expressed are those of the speakers and not necessarily those of the European Central Bank.
Published on 3 March 2020; recorded on 5, 6 and 13 February 2020.
In this episode:
(02:08) Climate change and financial stability
The risks emerging from climate change (physical and transition risks), their effects on financial stability, how stress tests help spot these risks and why international cooperation is key.
(13:22) Climate change and the green market
Why we don’t just buy more green bonds, how a taxonomy can help identify green assets and what the ECB is doing to make its own funds more sustainable.
(20:47) Climate change and banks
The role of banks in the shift to a more sustainable economy, how supervisors can help banks prepare for risks stemming from climate change and why transparency is important to better understand climate risks.
Climate change and the ECB
https://www.ecb.europa.eu/ecb/orga/climate/html/index.en.html
Speech (27 February 2020): C Lagarde, President of the ECB: Climate change and the financial sector
https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200227_1~5eac0ce39a.en.html
Research Bulletin: Finance and decarbonisation: why equity markets do it better
https://www.ecb.europa.eu/pub/economic-research/resbull/2019/html/ecb.rb191127~79fa1d3b70.en.html
Working Paper: Finance and carbon emissions
\https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2318~44719344e8.en.pdf
Financial Stability Review: Climate change and financial stability
https://www.ecb.europa.eu/pub/financial-stability/fsr/special/html/ecb.fsrart201905_1~47cf778cc1.en.html
Working Paper: The Green Golden Rule: habit and anticipation of future consumption
https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2247~72dc51ddd8.en.pdf
Economic Bulletin: Purchases of green bonds under the Eurosystem’s asset purchase programme
https://www.ecb.europa.eu/pub/economic-bulletin/focus/2018/html/ecb.ebbox201807_01.en.html
Working Paper: The impact of disasters on inflation
https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1982.en.pdf
Speech (2018): B Cœuré, Member of the Executive Board of the ECB: Monetary policy and climate change
https://www.ecb.europa.eu/press/key/date/2018/html/ecb.sp181108.en.html
ECB Press Conference Q&A (23 January 2020)
https://www.ecb.europa.eu/press/pressconf/2020/html/ecb.is200123~0bc778277b.en.html
European Central Bank website
https://www.ecb.europa.eu/home/html/index.en.html
Activity