Finance and climate: The transition to a low-carbon and climate-resilient economy from a financial sector perspective
Doryane Huber and
OECD Journal: Financial Market Trends, 2016, vol. 2015, issue 1, 7-23
Climate change is a major political and economic challenge. This paper sketches out its relevance for the financial sector. Necessary low-carbon investments imply a significant yet manageable financing gap. However, we argue that beyond capital mobilisation that has attracted most attention until now, the main challenge is ensuring a transition-consistent capital reallocation. The financial sector has a key role to play in that respect, complementary to appropriately designed climate policies. To help the financial system fulfil its role, the understanding of the economics of climate change should be deepened and a sector-wide businessoriented appropriation of these issues should be promoted. JEL classification: Q54, E10, E44, G12, G14, G21, G22, G23, G28. Keywords: Climate change, low carbon, climate finance, green finance, investment, capital allocation, financial system, risks
JEL-codes: E10 E44 G12 G14 G21 G22 G23 G28 Q54 (search for similar items in EconPapers)
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