News from the Grantham Research Institute at LSE – July 2020

Jay Owen Reforming Global Finance, Latest Headlines

There is a big focus in this update on the banking and finance sector with a new report, out today, looking at the role of banks in supporting a just transition in the UK. We feature a recent report on the Bank of England’s proposals on stress testing for climate risks and a new Sustainable Crisis Response toolbox for central banks and financial supervisors. This update also features the latest snapshot from our study of climate litigation cases across the world.

Bank sign above the door of financial building concept for finance and business

New report urges banks to support just transition to a sustainable and inclusive economy in wake of pandemic

Banks need to work with the government to create a new and more resilient model of prosperity that will enable the UK to build back better in the wake of the COVID-19 pandemic, according to a report published today. Read more

Better recovery, better world: resetting climate action in the aftermath of the COVID-19 pandemic

Amar Bhattacharya, James Rydge and Nicholas Stern

Finance ministers have a unique opportunity to design and implement comprehensive stimulus packages that can drive a strong recovery and build a better future: so argues a new paper prepared at the request of the co-chairs of the Coalition of Finance Ministers for Climate Action, summarised in this commentary. Read more

Climate economics’ support for the UN climate targets

Martin C. Hänsel, Moritz A. Drupp, Daniel J.A. Johansson, Frikk Nesje, Christian Azar, Mark C. Freeman, Ben Groom and Thomas Sterner

A new paper published in Nature Climate Change shows that despite appearances to the contrary, the Nobel Prize-winning DICE ‘climate and economy’ model and the UN’s climate targets are in fact pulling in the same direction. Read more

The impact of current climate policies on greenhouse gas emissions

Shaikh Eskander and Sam Fankhauser

This commentary outlines the results of a new study that shows the carbon savings made due to climate change laws and policies over the last two decades and calls on policymakers to adopt identified good practice so that environmental legislation leads to deeper cuts in greenhouse gas emissions. Read more

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Society as a co-designer of climate action: Learning from COVID-19

Candice Howarth

A new paper draws lessons from COVID-19 for the fight against climate change, arguing that people are willing to change their behaviour as long as there is a clear social mandate. Candice Howarth summarises the analysis. Read more

The new climate scenarios for central banks and supervisors

Roberta Pierfederici

This commentary outlines why new climate scenarios are a crucial step forward for informing central banks’ and supervisors’ response to climate risk, but recommends improvements for the methodological framework. Read more