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Climate change challenges for central banks and financial regulators

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The academic and policy debate regarding the role of central banks and financial regulators in addressing climate-related financial risks has rapidly expanded in recent years. This Perspective presents the key controversies and discusses potential research and policy avenues for the future. Developing a comprehensive analytical framework to assess the potential impact of climate change and the low-carbon transition on financial stability seems to be the first crucial challenge. These enhanced risk measures could then be incorporated in setting financial regulations and implementing the policies of central banks.

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Acknowledgements

The authors would like to thank S. Breeden, G. Galati, M. Scott and E. Denbee for useful comments on earlier drafts of the paper. E.C. would like to acknowledge the support of the Swedish Foundation for Strategic Environmental Research (Mistra). J.R.C. and P.M. would like to acknowledge the support of Partners for a New Economy. Any views expressed are solely those of the author(s) and so cannot be taken to represent those of the Bank of England or DNB, or to state their policies.

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Authors and Affiliations

  1. Institute for Ecological Economics, Vienna University of Economics and Business, Vienna, Austria

    Emanuele Campiglio

  2. Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, London, UK

    Emanuele Campiglio

  3. Department of Accounting, Economics and Finance, University of the West of England, Bristol, UK

    Yannis Dafermos

  4. Council on Economic Policies, Zurich, Switzerland

    Pierre Monnin

  5. Institute for Innovation and Public Purpose, University College London, London, UK

    Josh Ryan-Collins

  6. De Nederlandsche Bank, Amsterdam, The Netherlands

    Guido Schotten

  7. Bank of England, London, UK

    Misa Tanaka

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  1. Emanuele Campiglio
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  3. Pierre Monnin
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All authors contributed to the writing of the manuscript, under the coordination of E.C.

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Correspondence to Emanuele Campiglio.

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Campiglio, E., Dafermos, Y., Monnin, P. et al. Climate change challenges for central banks and financial regulators. Nature Clim Change 8, 462–468 (2018). https://doi.org/10.1038/s41558-018-0175-0

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