Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy: A Survey of the Issues
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Summary:
There are demands on central banks and financial regulators to take on new responsibilities for supporting the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. But their powers should not be overestimated. Their diagnostic and policy toolkits are still in their infancy. They cannot (and should not) expand their mandate unilaterally. Taking on these new responsibilities can also have potential pitfalls and unintended consequences. Ultimately, financial regulators cannot deliver a low-carbon economy by themselves and should not risk being caught again in the role of ‘the only game in town.’
Series:
Working Paper No. 2021/296
Subject:
Climate change Environment Financial regulation and supervision
Frequency:
regular
English
Publication Date:
December 17, 2021
ISBN/ISSN:
9781616356521/1018-5941
Stock No:
WPIEA2021296
Pages:
45
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