This paper analyses the exposure to climate risk of ABS, an asset class frequently pledged as collateral in the European Central Bank (ECB) refinancing operations. This paper focuses on ABS backed by auto loans or loans granted to Small and Medium Enterprises (SMEs) and explores ways to measure...

Does a shift to ambitious climate policy increase financial fragility? In this paper, we develop a quantitative macroeconomic model with carbon taxes and endogenous financial crises to study such "Climate Minsky Moments". By reducing asset returns, an accelerated transition to net zero exerts...

The new EU sustainable finance agenda:a. Is a political choice to subsidize private finance rather than curb environmentally harmful activities via binding environmental regulation, which would automatically make all finance green.b. Can be understood as the 4th piece of a jigsaw fostering an...