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Political Science > Environmental Policy

You are looking at 1 - 3 of 3 items for :

  • Type: Journal Issue x
  • Financial Institutions and Services: Government Policy and Regulation x
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Cover IMF Staff Country Reports
Sweden: Financial Sector Assessment Program–Technical Note on Supervision and Disclosure of Climate-Related Risks
International Monetary Fund. Monetary and Capital Markets Department
This paper discusses the technical note on Supervision and Disclosure of Climate-Related Risks for the Sweden Financial Sector Assessment Program. Swedish banks are in general mainly exposed to the effects of climate change through loans that are collateralized by real estate properties and lending to high-emission industries. Despite the challenges, Finansinspektionen (FI) has undertaken a number of positive initiatives aimed at integrating climate-related risks and the wider sustainability issues into its supervisory processes. There are however, still some gaps that need to be gradually addressed by FI to ensure full integration of climate-related risks into supervisory processes. The specific action to further integrate climate into the supervisory process should be prioritized based on the vulnerability of the Swedish banks and progress at international level in addressing the challenges that are not unique to Sweden. FI should also in a proportional manner formalize and expand its collaboration and information sharing arrangements with other Swedish Agencies involved in climate-related work.
Keywords:
transition risk; Sweden FSAP; government initiative; sustainability issue; aggregate risk; EU taxonomy regulation; CLIMATE-RELATED risk; Climate change; Climate policy; Greenhouse gas emissions; Global
Cover IMF Working Papers
Stress Testing the Global Economy to Climate Change-Related Shocks in Large and Interconnected Economies
Mr. Camilo E Tovar Mora, Mr. Yiqun Wu, and Tianxiao Zheng
We stress test the global economy to extreme climate change-related shocks on large and interconnected economies. Our analysis (i) identifies large and interconnected economies vulnerable to climate change-related shocks; (ii) estimates these economies’ external financing needs-at-risk due to these shocks, and (iii) quantifies the spillovers to the global economy using a global network model. We show that large and interconnected economies vulnerable to climate change could trigger a drain of $1.8 trillion in international reserves (2 percent of 2019’s global GDP). Domestic and multilateral macroeconomic policies can help reduce these global lossess to about $0.8 trillion. The scenario highlights the importance of considering global spillovers when assessing the impact of climate change-related shocks.
Keywords:
Climate change; external financing-needs-at-risk; multilayered networks; climate change vulnerability; vulnerability to climate change; climate vulnerability; climate change risk; CDS spread; Natural disasters; Stress testing; Climate policy; Global
Cover IMF Working Papers
Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy: A Survey of the Issues
Mr. Dimitri G Demekas and Pierpaolo Grippa
There are demands on central banks and financial regulators to take on new responsibilities for supporting the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. But their powers should not be overestimated. Their diagnostic and policy toolkits are still in their infancy. They cannot (and should not) expand their mandate unilaterally. Taking on these new responsibilities can also have potential pitfalls and unintended consequences. Ultimately, financial regulators cannot deliver a low-carbon economy by themselves and should not risk being caught again in the role of ‘the only game in town.’
Keywords:
Financial stability; financial regulation; climate change; climate mitigation policy; low-carbon economy; energy transition; carbon price; green finance; United Nations climate change conference; policy coordination; unintended consequence; Climate change; Global