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The potential contribution of central banks to green finance

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  2. Economics, Finance, Business & Management
  3. Vierteljahrshefte zur Wirtschaftsforschung
  4. Vol. 88, Issue 2
  5. pp. 55–71

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Breitenfellner, A., Pointner, W., Schuberth, H. The potential contribution of central banks to green finance. Vierteljahrshefte zur Wirtschaftsforschung, 88(2), 55-71. https://doi.org/10.3790/vjh.88.2.55
Breitenfellner, Andreas; Pointner, Wolfgang and Schuberth, Helene "The potential contribution of central banks to green finance" Vierteljahrshefte zur Wirtschaftsforschung 88.2, , 55-71. https://doi.org/10.3790/vjh.88.2.55
Breitenfellner, Andreas/Pointner, Wolfgang/Schuberth, Helene: The potential contribution of central banks to green finance, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 88, iss. 2, 55-71, [online] https://doi.org/10.3790/vjh.88.2.55
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The potential contribution of central banks to green finance

Breitenfellner, Andreas | Pointner, Wolfgang | Schuberth, Helene

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88(2019), Iss. 2 : pp. 55–71 | First published online: December 06, 2019

26 Citations (CrossRef)

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.88.2.55
Language
English
Pages
17
Keywords

Author Details

Andreas Breitenfellner, Oesterreichische Nationalbank, e-mail: andreas.breitenfellner@oenb.at

Wolfgang Pointner, Oesterreichische Nationalbank, e-mail: wolfgang.pointner@oenb.at

Helene Schuberth, Oesterreichische Nationalbank, e-mail: helene.schuberth@oenb.at

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Abstract

Summary: Central banks and financial supervisors approach ‘green finance’ mostly to preserve macroeconomic and financial stability according to their mandates. Obviously, climate change poses severe risks to households, firms and their financial intermediaries. These risks tend to be correlated and their scope goes beyond historical evidence, therefore their impact on the financial system is difficult to model. On the other hand, the planned decarbonization of the global economy creates enormous investment opportunities. Central banks and supervisors play a role in safeguarding the financial system’s smooth transformation from funding old, brown industries to funding a new green economy. The ‘Network for Greening the Financial System’ facilitates an exchange of experience and ideas among central banks and financial supervisors; we present some of their findings. While central banks can and should contribute to making the economy and the financial system more sustainable, they can only complement, but not substitute for, decisive political action by governments.

Table of Contents

Section Title Page Action Price
Andreas Breitenfellner, Wolfgang Pointner, and Helene Schuberth: The potential contribution of centralbanks to green finance 55
Summary 55
Zusammenfassung 55
1 Introduction 55
2 The economic and financial stability risks of climate change 57
2.1 Physical risks 58
2.2 Transition risks 59
2.3 Liability risks 60
2.4 Prudential policies to tackle climate-related financial risks 60
3 The market opportunity perspective 62
3.1 Mainstreaming green financial markets 62
3.2 Leading by example 63
4 Possible contributions of monetary policy 55
4.1 Quantitative easing 55
4.2 Credit easing 55
4.3 Collateral framework for monetary refinancing operations 55
5 Concluding remarks 55
References 55

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