Climate Changed
Bundesbank Cheers on Green Crusade as Climate Risks Increase
- Lenders must be aware of exposure to threats of global warming
- Monetary policy will reflect efforts of private sector
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Germany’s central bank is buffing up its green credentials as part of an international effort to spur lenders to brace for the fallout from climate change.
The Bundesbank is heading a review of central-bank strategies to support sustainable investments, and scrutinizing the dynamics of the quickly growing market. Together with its peers, it’s working on a handbook on the role of monetary authorities in fostering the greening of financial markets, to be published in October during the IMF meetings.