Climate regulation and financial risk: the challenge of policy uncertainty

  • Climate risk has become a major concern for financial institutions and financial markets. Yet, climate policy is still in its infancy and contributes to increased uncertainty. For example, the lack of a sufficiently high carbon price and the variety of definitions for green activities lower the value of existing and new capital, and complicate risk management. This column argues that it would be welfare-enhancing if policy changes were to follow a predictable longer-term path. Accordingly, the authors suggest a role for financial regulation in the transition.

Download full text files

Export metadata

Metadaten
Author:Tobias BergGND, Elena CarlettiGND, Stijn ClaessensGND, Jan Pieter KrahnenORCiDGND, Irene MonasteroloORCiDGND, Marco PaganoGND
URN:urn:nbn:de:hebis:30:3-644823
URL:https://safe-frankfurt.de/policy-center/policy-publications/policy-publ-detailsview/publicationname/climate-regulation-and-financial-risk-the-challenge-of-policy-uncertainty.html
Series (Serial Number):SAFE policy letter (100)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2023
Year of first Publication:2023
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2023/07/05
Tag:Climate Change; Financial Regulation and Banking
Edition:June 2023
Page Number:6
HeBIS-PPN:510536662
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universit├Ątspublikationen
Licence (German):License LogoDeutsches Urheberrecht