国际清算银行

By Joseph Noss, Vera Songwe, Jeffery Yong November 2024 JEL classification: G18, G21, G28, Q28 Keywords: climate change, banking supervision, climatefinance FSI Occasional Papers aim to contribute to international discussions on a wide range of topics of relevanceto the financial industry and its regulation and supervision. The views expressed in them are solely thoseof the authors and do not necessarily reflect those of the BIS or the Basel-based standard-setting bodies. Authorised by the Chair of the FSI, Fernando Restoy. This publication is available on the BIS website (www.bis.org). To contact the BIS Global Media and PublicRelationsteam,pleaseemailmedia@bis.org.Youcansignupforemailalertsatwww.bis.org/emailalerts.htm. ©Bank for International Settlements 2024. All rights reserved. Brief excerpts may be reproduced ortranslated provided the source is stated. Abstract The interconnection between the climate change crisis and environmental degradation presents an urgentneed for economies and businesses to transition towards more sustainable practices. This transition isessential not only to mitigate climate change but also to slow or reverse environmental degradation. Forthis shift to take place, substantial climate finance is required. A significant portion of this financing willneed to come from the private sector, particularly from financial institutions such as banks, asset managersand investors. As the demand for climate finance grows, a transformation in the financial sector is expected. Financialinstitutions’ engagement in this transition will largely depend on their financial soundness as well as onthe availability of resources and the incentives in place to make such involvement worthwhile. Arguably,institutions’ solvency, resources and incentives are all dependent on the policy framework. Consequently,a key question arises: how can policymakers and regulators develop frameworks and policy measures thatsupport financial institutions' involvement in climate finance while still addressing the risks posed by thoseactivities on their safety and soundness? Within their mandates, central banks and supervisors have a variety of policy options at their disposal todischarge their traditional financial stability and safety and soundness mandate, anticipating the increasedexposure of financial institutions to climate-related financial risks. They may even adopt a more proactivestance, directly supporting a smooth transition process on grounds that transition risks can threaten thesafety and soundness of financial institutions and the financial system. Those actions require the review ofthe existing regulatory and prudential toolbox, which may not capture the specificities of climate-relatedrisks and opportunities. It is crucial that financial regulations remain adaptable and fit for purpose as financial institutions’ riskprofiles evolve. As financial institutions engage more deeply in climate transition finance, their exposureto risks associated with climate change will change. Regulatory frameworks must be designed toaccommodate these shifting risk profiles. This will facilitate a smooth transition that both supports financialstability and mitigates the pressing climate and environmental challenges. Contents Section 1 – Introduction ................................................................................................................................................................. 1Section 2 – Banks’ involvement in climate finance and risks arising ............................................................................ 3Scenario 1: Green Winter ...................................................................................................................................................... 5Scenario 2: Green Acceleration........................................................................................................................................... 6Scenario 3: Green Goldilocks .............................................................................................................................................. 6Section 3 – Prudential treatment of climate finance ........................................................................................................... 7Section 4 – Possible objectives of prudential treatment of climate finance.............................................................. 9Section 5 – Conclusions ................................................................................................................................................................11References ..........................................................................................................................................................................................13 The rising tide of climate finance ‒scope to adjust prudentialtreatment Section 1 – Introduction Over the past centuries, global prosperity as measured by GDP growth has increas