Analysis and research

The analysis of the many implications that climate change and the transition to a more sustainable growth model entails for the economy as a whole and for the financial system occupies a prominent place on the Banco de España’s research agenda.

This was duly set out in the Analysis and research priorities for the Banco de España: 2020-2024 File PDF: Opens in new window (398 KB), published in 2020, and in the related 2021 update File PDF: Opens in new window (248 KB), which reaffirmed the need for this research area to take on greater significance. In light of this strategic decision, a growing number of Banco de España researchers are involved in a wide range of analytical projects which, among other issues, address:

  • The implications of climate change and the ecological transition for financial stability and for monetary policy conduct and effectiveness.

  • The development and calibration of selected macrofinancial models with which to assess the impact of carbon taxes.

  • The capacity of financial markets to develop new instruments conducive to the financing of sustainable projects and to properly assess the degree of exposure of firms and sectors to physical and transition risks.

  • The possible asymmetric impact of climate change and of the ecological transition on households and firms, and the capacity of different economic policy measures to counter these effects.