Year: 2025
Type: article
Abstract: Climate change represents a growing threat to global financial and economic stability. This paper presents a literature review on the strategies and measures adopted by central banks to mitigate climate-related financial risks and to facilitate the transition toward a sustainable economy. The review highlights that central banks are progressively integrating environmental risks into their financial supervision frameworks, conducting climate stress tests, and implementing strategies aimed at directing credit flows toward sustainable sectors. Nevertheless, an ongoing debate persists regarding the principle of central bank neutrality in the face of climate-related interventions.
Author: Eva Ugarte Pineda
Institution: Universidad Autónoma Metropolitana
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: diamond
OpenAlex ID: W4414577386
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