<ul><li>Climate change poses challenges to global financial stability, impacting central banks' traditional roles.</li><li>Central banks face two main dimensions of climate risk: physical risks and transition risks.</li><li>Managing climate risks requires adapting regulatory frameworks and stress testing methodologies.</li><li>Quantifying and integrating climate risks into financial models presents a significant challenge for central banks.</li><li>Collaboration among central banks is crucial to address climate risks consistently across jurisdictions.</li><li>Monetary policy can drive the transition to sustainable finance by favoring green investments.</li><li>Regulatory roles of central banks influence corporate behavior through climate risk disclosure expectations.</li><li>Central banks must navigate macroeconomic impacts of the green transition while ensuring inclusive growth.</li><li>Capacity building and knowledge exchange are vital for central banks to tackle climate risks effectively.</li><li>Enhancing data quality and availability is essential for accurate climate risk assessment by central banks.</li></ul>

Central Banks Tackling Climate and Transition Risks

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