Global | Climate change, taking action

Summary

Discussions about climate change policies are gaining ground in public debate as social awareness improves, and this is increasingly reflected in specific proposals for defining economic policy.

Key points

• Key points:
• In politics, climate change was at the forefront of the US election campaign, given the radical differences between the two main candidates. The election of the Democrats to the US Government will bring about a reversal of previous federal climate policies.
• A second area where the role of climate change policies is becoming more pronounced is among central banks and banking supervisors.
• The Federal Reserve (Fed) has just applied to join the Network for Greening the Financial System (NGFS), the group of central banks dedicated to analyzing and suggesting best practices that allow the global financial system to contribute to environmentally sustainable development.
• The third area in which climate change is gaining visibility is Economics. At the recent annual forum on central banking organized by the European Central Bank (ECB), an academic session was dedicated to the macro-financial implications of climate change.
• In order to enhance long-term predictability, and thus credibility, which helps policies achieve their objectives at the lowest possible cost, it was suggested to set up politically neutral institutions to pursue climate objectives. "Carbon Councils" would be responsible for reducing greenhouse gas emissions by introducing measures they deem suitable for meeting the objective, for example, charges for emissions.

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