Complementary Currency Systems Bridging Communities : Proceedings of 6th Biennial RAMICS Congress, 27-29 October, 2022, University of National and World Economy, Sofia, Bulgaria
The negative impact analysis of the climate change on the whole economy is particularly relevant for the central banks since they produce and use data before implementing the monetary policy to ensure the financial and prices stability and therefore mitigate the systemic risk in order to participate to build a healthy and resilient financial system. The goal of this paper is to discuss the development of potential sustainable finance policies in accordance with the central bank’s tools and propose some key recommendations at least in the short run to partly overcome the analysis lacuna in this field. After having attempted to capture the notion of sustainability and shortly describe the E.S.G (Environment, Social and
Governance) criteria, we justify why the central bank needs to develop sustainable financial tools for their potential monetary policies to fight against the climate change, for instance. From this definition attempt, several significant conclusions have emerged such as the harmonized taxonomy unavailability and the lack of reliable data to gauge with accuracy the climate change impacts on the financial and economic sectors, for instance. In addition, the risks related to climate change are likely difficult to evaluate given their complexity and uncertainty natures. However, this data lacuna should not prevent central banks from developing more sustainable tools based on usual and unusual monetary instruments such as capital
requirements or green interest rate in taking into consideration the three climate change risks (i.e., transition, physical and liability risks) exposure.
Goldman, S., Nenovsky, N., Zhang, S. Central Banks and Climate Change Risks: Potential Monetary Prudential Tools. Sofia: Monetary and Economic Research Center /MRC/, 2023 102-121,.
Goldman, S., Nenovsky, N., Zhang, S. Central Banks and Climate Change Risks: Potential Monetary Prudential Tools. Sofia: Monetary and Economic Research Center /MRC/, 2023 102-121,.
Goldman, S., Nenovsky, N., Zhang, S. (2023) Central Banks and Climate Change Risks: Potential Monetary Prudential Tools, Sofia: Monetary and Economic Research Center /MRC/ 102-121,.
Goldman, S., Nenovsky, N., & Zhang, S. (2023). Central Banks and Climate Change Risks: Potential Monetary Prudential Tools. Sofia: Monetary and Economic Research Center /MRC/, 102-121.
Goldman S, Nenovsky N, Zhang S. Central Banks and Climate Change Risks: Potential Monetary Prudential Tools. Sofia: Monetary and Economic Research Center /MRC/; 2023. p. 102-121.
