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The financial sector is highly affected by the spectre of climate change and other sustainability-related factors, as recognised by various global and EU policies. The 2015 Paris Agreement enshrines the signatories’ goal to make “finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.” The European Union, since the European Commission’s 2018...
The article reviews potential channels of impact of climate change on monetary policy and central bank operations. The issue of climate change is increasingly becoming the focus of central banks. The article begins with the discussion on the consistency of central banks’ mandates and a potential role of central banks in climate policy. The second section concentrates on risks climate change poses...
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