The 2015 Paris Agreement acknowledged the need to mobilise financial flows towards investments supportive of a low-greenhouse-gas-emissions economy and that are environmentally beneficial, what is known as “green finance”. The article explains the debate on the new demands climate change places on the financial system as a whole and on the banking system in particular, so that they may join the fight to minimise damages and support preventive initiatives. An analysis is made of the extent to which the financial markets and banks acknowledge and act in consequence of the risks to which climate change exposes them. The main national and international measures geared to improving the perception of climate risk and to helping financial markets and intermediaries identify green projects are also reviewed. The authors conclude that climate change has not been fully taken on board by the financial sector and they identify several obstacles preventing the mobilisation of funds for green projects, although the overall assessment at the international level reveals favourable developments in this respect.
Artículo de revista
Financial Stability Review. Issue 34 (May 2018), p. 111-134