UCL Institute for Innovation and Public Purpose


Macroeconomic and financial policy reforms for the green transition

Supporting central banks and ministries of finance to green private and public finance.

About the project

In the face of accelerating environmental breakdown, financial flows must urgently realign away from ecologically damaging and towards sustainable activities. This project aims to accelerate this shift by influencing monetary and fiscal policy and financial regulation undertaken by central banks, financial supervisors, ministries of finance and other relevant policymakers. Our research has built the case for policy interventions to be taken on a precautionary basis. This is justified by both the radical uncertainty and non-linear nature of climate change and biodiversity loss, including the challenge of ecological ‘tipping points’ and the catastrophic consequences of policy inaction. 

Over the course of this project, which was initiated in 2018, sustainability goals have steadily been moved up the agendas of macroeconoimc and financial policymakers, and IIPP research has had significant impact contributing to this progress. The ‘precautionary financial policy’ approach has been referenced in policy documents by the White House, the Network for Greening the Financial System (NGFS) and the Canadian Senate as well as individual central bank research. Our work on nature-related financial risks was also cited in the influential Dasgupta Review on the Economics of Biodiversity, and our researchers contributed substantially to a study group launched jointly by the NGFS and the INSPIRE research network on ‘Biodiversity and Financial Stability’. 

Our staff have provided consultancy to both the NGFS and the World Bank on these agendas and we collaborate with a number of individual central banks, as well as working in close partnership with other universities, foundations, think tanks, and NGOs on this agenda.  

Academic journal papers
Book chapters
Working papers
Policy briefs and reports
IIPP blogs
Media and events



Laudes Foundation

NGFS logo



C3A logo


Sunrise project

University of Exeter