Greening the Financial System: Climate Financial Risks and How ADB Can Help

Year Published

2023

Contributing Organizations

Asian Development Bank (ADB)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Technical Assistance & Project Preparation

Topic 2

Climate Finance Ecosystem

Topic 3

Climate Policy & Policy Engagement

Target Audience

Governments & Policymakers

Banks

MDBs/DFIs

Relevant Geography

Asia & the Pacific

Resource Description

This report explores how central banks and financial regulators can support the shift to a green financial system. It reviews emerging practices and proposes ways to integrate environmental considerations into financial policy and supervision.

Why This Matters

As climate risks intensify, financial authorities play a key role in ensuring markets are resilient, transparent, and aligned with sustainability goals.

Key Insights

Environmental risks are increasingly seen as financial risks, affecting macroeconomic stability and credit quality
Central banks can respond through research, supervision, and green portfolio management
Regulators can enhance disclosure, adjust capital rules, and create green finance taxonomies
Case studies from China, Bangladesh, Brazil, and others show early regulatory action
Stresses the need for international cooperation, capacity building, and consistent frameworks

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