Publications

The CO2 content of the TLTRO III scheme and its greening

Working paper by Chiara Colesanti Senni, Jens Van ‘T Klooster on 31 May 2023

This paper investigates the climate impact of central bank refinancing operations, with a focus on the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTRO) III programme.

Purposeful scenario analysis: A framework to guide central banks and financial supervisors in the selection and design of climate scenarios

Policy publication by Matthias Täger, Simon Dikau on 18 May 2023

This policy insight presents an initial conceptual framework on the application of climate scenario analysis and associated design requirements, focusing on the need for a clear purpose.

Carbon default swap – disentangling the exposure to carbon risk through CDS

Working paper by Alexander Blasberg, Rüdiger Kiesel, Luca Taschini on 27 Jan 2023

In this paper the authors use Credit Default Swap (CDS) spreads to construct a forward-looking, market-implied carbon risk factor and study how, where and when carbon risk affects firms’ creditworthiness by examining whether firms’ exposure to carbon risk is reflected in the market prices of their CDS contracts.

The European Central Bank’s strategy, environmental policy and the new inflation: a case for interest rate differentiation

Policy publication by Jens Van ‘T Klooster on 18 Jul 2022

This report draws attention to some of the important lessons learned from the past few decades regarding the economic pre-conditions for price stability, as contained in the ECB’s 2021 strategy.

Out of the window? Green monetary policy in China: window guidance and the promotion of sustainable lending and investment

Working paper by Simon Dikau, Ulrich Volz on 14 May 2021

Investigating the use of the green monetary policy tool ‘window guidance’ in China, the authors draw lessons for the design of green finance policies for other countries that seek to enhance sustainable finance and mitigate climate change and related risks.

It takes two to dance: Institutional dynamics and climate-related financial policies

Working paper by Moritz Baer, Emanuele Campiglio, Jérôme Deyris on 22 Apr 2021

This paper studies how institutional dynamics might affect the implementation of climate-related financial policies and discusses the scenarios that might originate from the current institutional setting.

Policy interactions and the transition to clean technology

Working paper by Ghassane Benmir, Josselin Roman on 22 Apr 2020

This paper assesses the effectiveness and interactions of different policies aimed at reducing carbon dioxide emissions, using a macro-financial framework. The research aims to provide central banks and similar institutions with the tools to contribute to climate change mitigation and demonstrates the importance of including these institutions in the push to reduce global emission levels. read more »