Accelerating the transition to a green economy is a necessity. This column argues that the green transition will create trade-offs for central banks. Phasing out polluting technologies is likely to temporarily slow down productivity growth, thus creating inflationary pressures. If central banks choose to ‘look through’ and let inflation temporarily rise, inflation expectations may de-anchor. […]
Asia and the Pacific is central to global climate change efforts, but robust capital markets are needed to mobilize private climate finance. Sustainable finance frameworks, transition finance, and carbon markets can build deeper markets that empower climate action. Asia and the Pacific relies on fossil fuels for nearly 85% of its energy, produces about half the world’s […]
The green transition faces significant challenges due to economic and policy uncertainty. Unpredictable returns on investments, especially in renewable energy, hinder innovation in this crucial sector. This column examines the impact of uncertainty on renewable energy patents. The findings show that a rise in uncertainty reduces green innovation by up to 1.5%, with stronger effects […]
