Climate Safe Policy Initiative
The Climate Safe Policy Initiative injects thought provocation into the debate on financial regulation to reframe the design of the financial system consistent with social and environmental objectives. This initiative influences financial policies to help meet the Climate Safe Lending Network’s goal of aligning bank lending with the Paris Agreement on climate action.
A particular focus of our work is identifying ways that climate change can be integrated into the policies and operations of the Federal Reserve system. We are planning a programme of events bringing together finance professionals, regulators and civil society leaders to explore a path forwards.
Regulations implemented by central banks have mostly been based on the premise: How can we keep the finance sector safe from the environment, rather than how can we keep the environment safe from the finance sector? To protect the environment from the finance sector and maintain the planetary stability upon which financial stability rests, financial regulators need a fundamentally different toolbox. One that ensures that the financial sector addresses planetary emergencies so as to maintain financial stability for generations to come.