Climate change is one of the biggest risks to the global financial system and to the economies of perhaps every nation upon this planet. Central banks could play a prominent role in protecting us from this economic upheaval. This paper develops an objective Green Central Bank Index. The index is...

Agriculture, forestry and other land use (AFOLU) represent 22% of global greenhouse gas emissions. To meet the objectives of the Paris Agreement, the AFOLU sector greenhouse gases must be dramatically reduced and eventually transformed to net negative CO2e within this century. The...

The EU Taxonomy is the first standardised and comprehensive classification system for sustainable economic activities. It covers activities responsible for up to 80 percent of EU greenhouse gas emissions and may play an important role in channelling investments into low-carbon technologies by...

The Intergovernmental Panel on Climate Change (IPCC) highlights the importance of reaching net-zero CO2 emissions globally by 2050. Unlocking the potential of natural climate solutions in the strive for net-zero emissions is increasingly gaining attention. A large potential may arise from the...

Funds with an environmental, social and corporate governance (ESG) mandate have been growing rapidly in recent years and received inflows also during periods of market turmoil, such as March 2020, in contrast to their non-ESG peers. This paper investigates whether investors in ESG funds react...

This paper is designed to provide comprehensive details on the carbon markets across the major Asian economies and with specific attention to the Chinese carbon market. We particularly discuss the carbon markets across the major northeast (the People's Republic of China [PRC], Japan, and the...

Present research is aimed to examine the factors affecting the disclosure of corporate carbon emission. Investors, especially shareholders, largely rely upon the disclosure of financial and other data to determine the firm value. However, disclosure of environmental performance such as carbon...

Climate change has exacerbated extreme weather events; global warming and its effects have been described as unequivocal and unprecedented. It has been recognized that transitioning to a low carbon economy will require large scale transformation. We are witnessing a period in which there are...

We assess the feasibility, optimality, and policy implications of Environmental, Social, and Corporate Governance (ESG)-linked or “green” lending in a credit market where banks incorporate such non-financial data in credit allocation decisions. We identify an asymmetric information problem:...

This study investigates the underlying reasons for banks' continued support of fossil fuel-based firms and examines the role of public guaranteed loans (PGLs) in redirecting resources towards greener economic activities, thereby facilitating the climate transition process. Using a unique...