Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy: A Survey of the Issues

There are demands on central banks and financial regulators to take new responsibilities for supporting the transition a low-carbon economy. Regulators can indeed facilitate reorientation of flows necessary transition. But their powers should not be overestimated. Their diagnostic policy toolkits still in infancy. They cannot (and not) expand mandate unilaterally. Taking these also have potential pitfalls unintended consequences. Ultimately, deliver economy by themselves risk being caught again role ‘the only game town.’