Adapting Macroprudential Frameworks to Climate Change Risks

Resource description: This resource examines how macroprudential approaches can be adapted to address climate-related financial risks.

Key Insights:

1. Discusses the financial risks posed by climate change and the current micro and macroprudential approaches for addressing these risks
2. Explains how macroprudential frameworks can evolve further to address the financial risks from climate change
3. Suggests five propositions that address the systemic risks posed by climate change and are concerned with the structure of financial flows and meeting of the GHG emissions targets
4. Outlines assessment steps in considering whether a financial asset is meeting climate targets

Why This Matters: Macroprudential analysis has adapted over time to address prescient financial stability concerns. However, another adaptation is necessary to reflect the very real financial stability challenges posed by climate change.