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6 - Mobilising the Financial System for Decarbonisation

Published online by Cambridge University Press:  01 February 2024

Grégory Claeys ,
Marie Le Mouel ,
Simone Tagliapietra ,
Guntram B. Wolff  and
Georg Zachmann
Grégory Claeys
Affiliation:
Bruegel
Marie Le Mouel
Affiliation:
Bruegel
Simone Tagliapietra
Affiliation:
Bruegel
Guntram B. Wolff
Affiliation:
German Council on Foreign Relations
Georg Zachmann
Affiliation:
Bruegel
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Summary

This chapter discusses how decarbonisation will affect capital markets and how capital markets can support decarbonisation. One notable focus is on the risk of ‘stranded assets’, that is assets that lose value because of decarbonisation, and the potential implications for financial stability. The chapter also analyses how capital markets can become a key enabler of decarbonisation, also thanks to new sustainable finance instruments such as green bonds.

Keywords

financial sectorstranded assetsdecarbonisation
Type
Chapter
Information
The Macroeconomics of Decarbonisation
Implications and Policies
 , pp. 210 - 250
Publisher: Cambridge University Press
Print publication year: 2024

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