Series: Occasional Papers. 2622.
Author: Clara I. González, Pedro Linares, Soledad Núñez, Íñigo Losada, Anil Markandya, Avinash Persaud, Frank Elderson, Kevin Stiroh, Rob Patalano, Enrique Serrano, Caspar Siegert, James Talbot, Juan Ayuso, Elena Triebskorn, Luis Ángel Maza, Carmen Nuzzo, Agnieszka Trzcinska and Yann Marin
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Abstract
Rationale
The challenges that climate change poses to the financial system require bringing together the knowledge and experience of central banks, policymakers, academics and experts. In this context, on 25 March 2026, the Banco de España organised the conference “Climate Risk and Sustainable Finance: Bridging Policy, Research and Practice”, together with the Network for Greening the Financial System, the Centre for Economic Transition Expertise and the Transition Pathway Initiative Centre at the London School of Economics. The main contributions are presented in this joint publication by the Banco de España and the journal Papeles de Energía published by Funcas.
Takeaways
The articles cover the following topics:
- Climate risks, adaptation and finance: the first group of contributions addresses physical and transition risks, adaptation to the impacts of climate change, and the financing needs associated with building more resilient economies.
- Banking risk management and supervision: several articles focus on the integration of climate-related risks into banks’ risk management and on the evolution of supervisory approaches and practices.
- The role of central banks: several contributions explore how climate considerations are being incorporated into central banks’ operational frameworks and portfolio management, and review different approaches to monetary policy.
- Data, scenarios and nature: several articles address the development of data and scenarios to improve risk identification and assessment, as well as the growing attention to nature-related risks and natural resources such as water.