Climate transition risk stress test for the German financial system

Ivan Frankovic, Tobias Etzel, Alexander Falter, Christian Gross, Jana Ohls, Lena Strobel and Hannes Wilke

No 04/2023, Technical Papers from Deutsche Bundesbank

Abstract: This paper presents the methodology applied in the Deutsche Bundesbank's climate transition stress test for the German financial system, see Deutsche Bundesbank (2023). It discusses the construction of the transition scenarios underlying the analysis, including a long-run orderly scenario and a more disruptive short-term carbon price shock. Furthermore, the document shows the methodology for translating scenario impacts onto the asset level, which includes the consideration of firm-level carbon emission data where available. Finally, the impacts on the balance sheets of German banks, funds and insurers are discussed.

Keywords: climate risks; stress testing; climate scenarios; financial stability (search for similar items in EconPapers)
JEL-codes: G2 H23 Q5 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-ene, nep-env and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/283347/1/technical-paper-2023-04.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubtps:283347

Access Statistics for this paper

More papers in Technical Papers from Deutsche Bundesbank Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().