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While global emissions continue to increase, banks continue to finance the expansion of the fossil-fuel industry. At the systemic level, this trading is a pretence of financial stability now for a more disorderly transition scenario with greater financial instability later. This Policy Brief proposes that central banks should take a macro approach to managing system-wide risks stemming from the climate transition.
Read the article: https://www.pubaffairsbruxelles.eu/opinion-analysis/what-can-central-banks-do-to-take-the-paris-agreement-seriously/