A global database for climate-related financial policies
BACKGROUND
Climate change can directly impact financial stability by increasing the frequency and severity of natural disasters like heat waves, windstorms, floods, or droughts. Physical risks can reduce the value of financial organizations' collateral assets and insurance liabilities when they manifest. Transition risks, such as unforeseen adjustments in climate policy, technological advancement, or shifts in public opinion and consumers' preferences, can also impact financial markets. Therefore, it is now commonly accepted that central banks and financial regulators must act to establish regulations to address climate-related financial risks and scale up green finance. Although their policies cannot substitute for climate policy, central banks' and financial regulators' actions are essential for addressing current and future climate threats to financial stability.
OBJECTIVE OF THE PROJECT
Our knowledge of what policies are used across countries and time, which the authorities responsible for their promotion and implementation, and the “bindingness” of the policy is still quite limited, hindering our ability to understand the newly developed financial policies and institutions’ reforms in the short and medium run in response to climate change threats to the financial system stability. Against this backdrop, this article introduces the Climate-related Financial Policies Database and provides statistics on its main indicators. The database captures various aspects of financial (central banks and financial regulators and supervisors) and non-financial (ministries, banking associations, governments, and others) institutions’ green financial policymaking in the past 20 years.
METHODOLOGY
The methodology is described in D'Orazio, P. (2022), A global database for climate-related financial policies, under review [this reference will be updated]
DATA SOURCES
A wide range of public sources is used to populate, update and curate the dataset, including official government, central banks and financial institutions sources, webpages of public institutions, central banks, financial supervisory authorities, governments, and banking associations. An Open Library of Sources contains all sources used to collect the data.
DATA FIELDS
ID: Unique identifier for each individually implemented measure.
Country: The Country where the measure was implemented.
ISO3: Three-letter country code published by the International Organization for Standardization.
GEO: geographical location according to the World Bank classification.
DEV: Development stage according to the World Bank classification:
- high-income countries: HIC,
- upper-middle income countries: UMIC,
- lower-middle-income countries: UMIC,
- low-income countries: LIC.
YEAR: Year of adoption of the policy.
CAT1: Type of instrument: for each category, single instruments have been recorded.
CAT2: Taxonomy according to the five Policy Areas.
DESCR: Describes the measure found in the text data source, translated into English.
AUTH: Identifies the institution responsible for the promotion/implementation of the policy, as mentioned in the document.
AUTHCAT: Identifies the type of institution responsible for the promotion/implementation of the policy classified according to the following categories:
- Central banks: 1,
- Financial supervisors and regulators: 2,
- External (when either a government or non-governmental actor is involved): 3;
- Multiple (when multiple government or non-governmental actors are involved): 4.
BIND: Describes the bindingness of the policy. We assign the values as follows:
- no information on the bindingness (or the policy is not binding): 1,
- Voluntary adoption: 2,
- Mandatory adoption: 3.
LICENSE
This project is licensed under the CC BY License.
HOW TO CITE?
Paola D'Orazio. (2022). paorazio/CRFPdata: v3.1.0 (v3.1.0). Zenodo. https://doi.org/10.5281/zenodo.7434688
CONTACT
Paola D'Orazio Ruhr University Bochum paola.dorazio@rub.de
Please contact me via email if you notice any inaccuracies in the underlying data or if relevant information is missing.