Publications

Sustainable and responsible management of central banks’ pension and own portfolios

Central banks are increasingly looking to align their operations with sustainability objectives within the constraints of their mandates. This agenda…

Central banks and climate-related disclosures: applying the TCFD’s recommendations

Central banks are increasingly exploring how climate-related financial risks and opportunities impact their price and financial stability mandates, as well…

Developing a precautionary approach to financial policy – from climate to biodiversity

Climate change and biodiversity loss have primarily been approached by financial authorities (central banks and supervisors) from the perspective of…

Inflation and climate change: the role of climate variables in inflation forecasting and macro modelling

Climate change is increasingly affecting the objective, conduct and transmission of monetary policy. Yet, climate-related shocks and trends are still…

The EU Taxonomy and the Syndicated Loan Market

This paper provides the first empirical evidence on the financial market effects of the EU Taxonomy for Sustainable Activities. Using…

Changes in rainfall, agricultural exports and reserves: macroeconomic impacts of climate change in Argentina

Most of the articles that analyze the macroeconomic impact of the physical risks of climate change focus on discrete, one-time…

Biodiversity and Economic Growth: Something Must Give

28 March: The level of world economic activity driven by explosive growth in population and living standards since the late…

Ecological Accounting: How to organize information for biodiversity conservation decision and action at the national, business and ecosystem levels?

24 March: In order to contribute to the multiple efforts for the transformation of our economy into a system that…

Central Banking and Supervision in the Biosphere

24th March: NGFS-INSPIRE Study Group on Biodiversity and Financial Stability have published their final report 'Central Banking and Supervision in…

From financial risk to financial harm: Exploring the agri-finance nexus and drivers of biodiversity loss

24 March: There is growing awareness amongst both financial policy makers and financial institutions of the need to better understand…

A Dashboard for Biodiversity Risk Metrics

24 March: This policy brief calls on central banks and financial supervisors to build and use a dashboard of biodiversity…

Quantifying Financial Impacts of Biodiversity? Conceptual and Theoretical Frameworks, Limits, and Implications

22 March: The issue of biodiversity has entered the sphere of finance very recently, precipitating the confrontation of two divergent…

An Exploration of Nature-Related Financial Risks in Malaysia

15 March: Bank Negara Malaysia and the World Bank published today a report entitled “An Exploration of Nature-related Financial Risks…

Quantifying the impact of green monetary and supervisory policies on the energy transition

15 February: To quantify the impact of "green" monetary and supervisory policies of central banks we develop a dynamic General…

How soil degradation amplifies the financial vulnerability of listed companies in the agricultural value chain

27 January: If nature is not protected, at least USD 10 trillion of GDP will be lost by 2050 due…

Do the SDGs Affect Sovereign Bond Spreads? First Evidence

11 January: We study the relation between a country's performance on the United Nations' Sustainable Development Goals (SDGs) and its…

An environmental mandate, now what? Alternatives for greening the Bank of England's corporate bond purchases

7 January: In March 2021, the UK Government explicitly included the support for the transition to a net zero economy…

Central bank collateral as a green monetary policy instrument

14 December: Central banks can play an important role in the transition towards a climate-neutral economy. This paper discusses different…

The Effects of Mandatory ESG Disclosure around the World

10 December: We examine the effects of mandatory ESG disclosure around the world using a novel dataset. Mandatory ESG disclosure…

Assessing the effectiveness and impact of central bank and supervisory policies in greening the financial system across the Asia-Pacific

This article presents the findings from the second Asia-Pacific (APAC) Central Bank Sustainability Survey, shedding light on (i) details of…

Biodiversity and Financial Stability: building the case for action

8 October: Today, the joint Study Group on ‘Biodiversity and Financial Stability’ - launched in April 2021 by the NGFS…

Climate Change and Fiscal Sustainability: Risks and Opportunities

Both the physical and transition-related impacts of climate change pose substantial macroeconomic risks. Yet, markets still lack credible estimates of…

Engaging central banks in climate change? The mix of monetary and climate policy

Given the recent debate on the role of central banks under climate change, this research theoretically investigates the mix of…

Feeling the heat: Climate risks and the cost of sovereign borrowing

This paper empirically examines the link between the cost of sovereign borrowing and climate risk for 40 advanced and emerging…

Climate Change Mitigation: How Effective is Green Quantitative Easing?

We develop a two sector integrated assessment model with incomplete markets to analyze the effectiveness of green quantitative easing in…

NGFS Scenarios Portal

Changes to our climate are unprecedented and so past data are a poor guide to the risks that may materialise…

Cities as Fossil Fuel Investment Brokers

Using a global dataset of over 840,000 equity, bond and syndicated loan investment banking deals, we build the fossil fuel…

1in1000

This new research program that aims to integrate future risks and challenges, notably those related to climate change, ecosystem service…

Biodiversity and financial stability: exploring the case for action

18 June: NGFS and INSPIRE have established a joint Study Group on Biodiversity and Financial Stability, with the aim to…

NGFS Climate Scenarios for central banks and supervisors (Phase 2)

CAROs: Climate Risk-Adjusted Refinancing Operations

Policymakers have argued that markets are not pricing climate risk appropriately yet, which may lead to a misallocation of resources…

Politica Regulatoria Financiera Verde para America Latina en el Post-Corona

Por más de un año, la pandemia del COVID-19 ha presionado a gobiernos, economías y la salud publica a un…

Green Financial Regulatory Policy for Latin America in the Aftermath of COVID-19

For over a year now, the COVID-19 pandemic has strained governments, economies and public health to within breaking point. In…

Finance, climate-change and radical uncertainty: Towards a precautionary approach to financial policy

Climate-related financial risks (CRFR) are now recognised by central banks and supervisors as material to their financial stability mandates. But…

Rising Temperatures, Falling Ratings: The Effect of Climate Change on Sovereign Creditworthiness

Enthusiasm for ‘greening the financial system’ is welcome, but a fundamental challenge remains: financial decision makers lack the necessary information.…

Greening the Eurosystem Collateral Framework - How to decarbonise the ECB’s monetary policy

Bracing for the Typhoon: Climate Change and Sovereign Risk in Southeast Asia

Southeast Asian countries are among those most heavily affected by climate change. The number and intensity of extreme weather events…

Financial Supervision beyond the Business Cycle. Towards a new paradigm

At the turn of the decade, a specific class of risks are coming increasingly into focus – long-term risks (LTRs).…

The stochastic impact of extreme weather events

A Toolbox of Sustainable Crisis Response Measures for Central Banks and Supervisors – Second Edition: Lessons from Practice

The second in a two-part series published in 2020, this report is designed to provide central banks and financial supervisors…

Case Studies of Environmental Risk Analysis Methodologies

This Occasional Paper presents a detailed and in-depth discussion of the tools and methodologies for Environmental Rish Analysis (ERA) through…

The role of monetary policy during a low-carbon transition

The Paris agreement reflects a commitment ratified by 189 countries to limit global temperature increases to well below 2°C. This…

Climate Change and Sovereign risk

Climate Change and Sovereign Risk provides a comprehensive analysis of the ways in which climate risks affect sovereign risk. New…

Low-Carbon Transitions and Systemic Risk

The low-carbon transition has been cited by policymakers as a potential driver of systemic risk that could lead to financial…

Assessing the Impact of Climate-Related Transition on Default Probabilities of Thermal Power Companies.

In this chapter, we present an analytical framework and the methodologies for measuring the impact of climate-related physical risks on…

Case Studies of Environmental Risk Analysis Methodologies

10 September: Over the last few years, the idea that environment‐related risks can strand assets in different sectors of the…

Feeling the Heat: Climate Risks and the Cost of Sovereign Borrowing

This paper empirically examines the link between the cost of sovereign borrowing and climate risk for 40 advanced and emerging…

Guide to climate scenario analysis for central banks and supervisors

NGFS Climate Scenarios for central banks and supervisors (Phase 1)

A Toolbox of Sustainable Crisis Response Measures for Central Banks and Supervisors

The first in a two-part series published in 2020, this report is designed to provide central banks and financial supervisors…

COVID-19 highlights the need to strengthen environmental risk management and scale-up sustainable finance and investment across Asia

Building the analytical foundations for greening the financial system. The first report of the International Network for Sustainable Financial Policy Insights, Research and Exchange – INSPIRE

In the Name of COVID-19: Is the ECB Fuelling the Climate Crisis?

We offer preliminary evidence drawing on a novel dataset of corporate bonds issued in the European energy sector since January…

Covid-19 lessons for sustainable finance

Pricing forward-looking climate risks in financial contracts

Addressing climate-related financial risks and overcoming barriers to scaling up sustainable investments

Climate-related financial policy in a world of radical uncertainty: Towards a precautionary approach.

Climate-related financial risks (CRFR) are now recognised by central banks and supervisors as material to their financial stability mandates. But…

Assessing forward-looking climate risks in financial portfolios: a science-based approach for investors and supervisors

Climate risk is a new source of financial risk characterized by deep uncertainty, non-linearity, and endogeneity. Neglecting these characteristics leads…

A science-based climate-stress testing framework to integrate forward-looking climate transition risk into existing supervisory

A global research network to help green the financial system