Response to the Bank of England December 2019 discussion paper

This UCL Institute for Innovation and Public Purpose (IIPP)'s response is to the Bank of England’s discussion paper, The 2021 biennial exploratory scenario on the financial risks from climate change.

Download reponse

This document is IIPP’s response to the Bank of England’s discussion paper, The 2021 biennial exploratory scenario on the financial risks from climate change, which was published in December 2019. In this response, we commend the Bank of England for pioneering a material step forward in the supervisory management of climate-related financial risks. We also reflect upon several pressing questions raised by the discussion paper, which challenge the feasibility of achieving reliable and meaningful results whilst ensuring ease-of-implementation. We urge the Bank to critically assess whether scenario analysis approaches are able to stimulate material capital reallocation within the pressing timeframes remaining for climate mitigation and adaptation. This response was submitted to the Bank of England on 18 March 2020.

Authors

• Katie Kedward | Policy Fellow in Sustainable Finance, UCL Institute of Innovation and Public Purpose
• Josh Ryan-Collins | Head of Finance and Macroeconomics, Senior Research Fellow, UCL Institute of Innovation and Public Purpose
• Hugues Chenet | Honorary Senior Research Fellow, UCL Institute for Sustainable Resources