Article in Journal
Finance and Climate Change Risk: Managing Expectations
Claudio Borio, Stijn Claessens, Nikola Tarashev
CESifo, Munich, 2023
EconPol Forum 24 (1), 5-7
CESifo, Munich, 2023
EconPol Forum 24 (1), 5-7
- The financial sector has a key role to play in supporting the green transition
- It is unrealistic to expect financial markets to induce the green transition unless the right signals come from the real economy
- Unrealistic expectations can set the financial sector up for failure and derail the green transition
- Risks to financial stability stem from exposure to overvalued emission-intensive assets, but also to overvalued “green” assets or assets that purport to be green
Included in
EconPol Forum 01/2023: Climate Change: Greening the Economy by Green Finance?
CESifo, Munich, 2023