Using an APT model where global temperature shocks are a systematically priced factor, the risk premium is significant and positive. Evidence is provided that positive exposure to temperature shocks is related to increasing CO2 emissions by an industry or region. The global impact on the cost of...

Prudential financial regulators, central banks, and regulatory authorities have increasingly come to recognize that they have a role to play in dealing with climate change, including climate disasters such as storms, tornados, tsunamis, and so on. Such climate events impact the real economy by...

This paper provides an overview of green banking as an emerging area of creating competitive advantages and new business opportunities for private sector banks and expanding the mandate of central banks and supervisors to protect the financial system and manage risks of individual financial...