Greening capital requirements
Dafermos, Y., van Lerven, F. & Nikolaidi, M.
(2022).
Greening capital requirements.
(The Inspire Sustainable Central Banking Toolbox Policy Briefing Papers 8).
Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science.
Capital requirements play a central role in financial regulation and have significant implications for financial stability and credit allocation. However, in their existing form, they fail to capture environment-related financial risks and act as a barrier to the transition to an environmentally sustainable economy. This paper considers how capital requirements can become green and explores how green differentiated capital requirements (GDCRs) can be incorporated into financial regulation frameworks.
| Item Type | Report (Technical Report) |
|---|---|
| Copyright holders | © 2022 The Authors |
| Departments | LSE |
| Date Deposited | 10 Oct 2022 |
| URI | https://researchonline.lse.ac.uk/id/eprint/116946 |
Explore Further
- https://www.lse.ac.uk/granthaminstitute/ (Publisher)
- https://www.inspiregreenfinance.org/publications/ (Official URL)