Global climate change poses an existential threat to human civilization because it disrupts the supply of natural resources that provide basic life staples – water, food, and energy. If humankind is unable to adapt to a less abundant and less predictable supply of resources, then the effective...

We study how banks’ climate sentiments affect their lending decisions and economic decarbonization.Banks can form expectations about firms’ performance in the low-carbon transition either in a backwardlooking(firms’ GHG emissions) or forward-looking way (firms’ technology alignment). We...