Climate-related financial risks (CRFR) are now recognised by central banks and supervisors as material to their financial stability mandates. But while CRFR are considered to have some unique characteristics, the emerging policy agenda for dealing with them has largely focused on conventional...

Climate-related financial risks (CRFR) pose unique challenges for capital requirements regulation. CRFR are forward looking, non-linear, systemic and endogenous – attributes that render quantitative estimates of physical and transition risk subject to radical uncertainty. CRFR are also...