Climate change, the green transition and the financial sector

Climate change and the transition towards a low-carbon economy also involve the financial system. Firstly, this is because of its role as an intermediary between savings and investment , since the financial sector can facilitate the channelling of funds towards activities that contribute to the green transition . 1 Secondly, climate change and actions to mitigate it involve financial risks . In this article, we focus on analysing the implications of climate change for the financial sector and the transition towards a low-carbon economy. Economies face two types of risks...