INSPIRE Funded Projects

INSPIRE commissions research developed by its advisory committee in consultation with the NGFS’s members and the broader research community.

NGFS-commissioned research products

When requested by the NGFS, INSPIRE also commissions outside research to inform work products developed by the NGFS. Currently, such work includes the following projects:

  • In 2019, INSPIRE began working with the NGFS’s workstream 1 to support an “Occasional Paper” from independent researchers on current supervisory practices in environmental risk assessment to inform the workstream’s own report on the topic.
  • In 2019, INSPIRE has, at the request of the NGFS, worked with workstream 2 to commission a set of external researchers to develop a set of climate “reference” scenarios to assist supervisory authorities and the market to manage climate-related financial risks, and to facilitate dialogue with the research community on such scenario modeling. The initial scenarios and guidance issued by the NGFS as a result of this research can be found here.


INSPIRE commissioned research products

INSPIRE has released both comprehensive and targeted research calls that have incorporated a broad range of research topics aligned to the NGFS’s five dedicated workstreams. Originally this research portfolio could be organized into five thematic areas, see here, however, as the narrative has quickly evolved from why central banks and supervisors should act to how they should act, INSPIRE established a research theme orientated around assessing the impact and effectiveness of policies, see here. Most recently and in response to the COVID-19 crisis, INSPIRE has introduced a new research area focused solely on supporting central banks and supervisors deliver sustainable crisis response measures.

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Theme 1

Microprudential regulation, disclosure, climate change, and environment

Mandatory ESG disclosure and financial stability

Dragon Yongjun Tang,*  University of Hong-Kong; Rui Zhong, University of Western Australia

Supervision beyond the business cycle: A framework for long-term financial supervision.

Ben Caldecott,* University of Oxford; and Jakob Thomä, 2° Investing Initiative

Management of climate risks in the financial industry of a resource based economy: A Canadian scenario analysis.

Olaf Weber,* University of Waterloo; Truzaar Dordi, University of Waterloo; Adeboye Oyegunle, University of Waterloo

Environmental and social risk management in Brazilian banking: from an environmental and social management structure to climate scenario analysis development

Guilherme Teixeira,* SITAWI Finance for Good; Gustavo Pimentel, SITAWI Finance for Good; Beatriz Maciel, SITAWI Finance for Good

How could the US Federal Reserve and other financial market supervisors incorporate climate considerations into their responsibilities?

Adele Morris,* The Brookings Institution; and Warwick McKibbin, The Brookings Institution and Australian National University

Working Group on Banking Supervision and Sustainable Development in The Americas.

Kevin P. Gallagher,* Boston University; Janine Ferretti, Boston University; Daniel Schydlowsky, Boston University. Report here.

Green Financial Regulatory Policy for Latin America in the Aftermath of COVID-19

Daniel Schydlowsky, Global Development Policy Center, Boston University. Report here. 
Theme 2

Macro-financial risk, macroprudential regulation, financial instability, and climate change

Climate-related financial policy in a world of radical uncertainty – towards a precautionary approach

Josh Ryan-Collins,* University College London; Hugues Chenet, University College London; Frank van Lerven,New Economics Foundation. Download the paper here

Low-carbon transitions and systemic risk

Jason Eis,* Vivid Economics; Rosie Dollman, Vivid Economics; Giulio Vannicelli, Vivid Economics; Emanuele Campiglio, WU Vienna University of Economics and Business. Report here.

The stochastic impact of extreme weather events

Amit Kara,* National Institute of Economic and Social Research; Ian Hurst, National Institute of Economic and Social Research; Iana Liadze, National Institute of Economic and Social Research).

Assessing forward-looking climate risks in investors’ portfolios: from theory to practice Stefano Battiston* (University of Zurich), Antoine Mandel (Panthéon-Sorbonne University), Irene Monasterolo (WU Vienna University of Economics and Business)

  • Addressing climate-related financial risks and overcoming barriers to scaling up sustainable investments. Report here. 
  • Pricing forward-looking climate risks in financial contracts. Report here. 
  • A science-based climate-stress testing framework to integrate forward-looking climate transition risk into existing supervisory. Report here
  • Assessing forward-looking climate risks in financial portfolios: a science-based approach for investors and supervisors. NGFS Handbook on assessing and managing environment-related risks. Report here
  • Dissemination details for the above papers here.

Prudential instruments to scale up green finance: simulating the impact of green prudential regulations in an agent-based macrofinancial model

Paola D’Orazio,* Ruhr-Universität Bochum and Lilit Popoyan, University of Naples Parthenope
Theme 3

Evaluating risk differentials based on environmental factors

Is credit risk lower for banks’ green assets?

Rui Zhong,* University of Western Australia; Jing Yu, University of Western Australia; Xiaoyan Zhou, University of Oxford

Using credit risk as an empirical basis for the development of ‘brown’ investment taxonomies.

Charles Donovan,* Imperial College London; Bob Buhr, Imperial College London; Alexandre Köberle, Imperial College London; Anastasiya Ostrovnaya, Imperial College London

Estimating the impact of climate physical risks on default probability of mortgage loans

Tianyin Sun,*Tsinghua University; Ma Jun,* Tsinghua University; Gabriela Aznar Siguan, Eidgenössische Technische Hochschule and MeteoSwiss;  David Bresch, Eidgenössische Technische Hochschule
Theme 4

Monetary policy, direct and indirect monetary instruments, climate change and the environment


The impact of climate change and policies on the balance of payments and central banking in commodity-exporting emerging economies

Pablo Gabriel Bortz, Annina Kaltenbrunner, Nicole Toftum and Anne Löscher

From Covid-19 to climate change and nature loss: how can a precautionary financial policy framework coordinate monetary, prudential and fiscal policies to address long term challenges?

Hugues Chenet, Katie Kedward, Josh Ryan-Collins, Romain Svartzman

Building a macro-financial integrated-assessment model for ordered transitions and fiscal-monetary policy interactions

Francesco Lamperti, Valentina Bossetti, Andrea Roventinil and Massimo Tavoni

Optimal Climate Change Mitigation through Green Quantitative Easing and Fiscal Policy

Alexander Ludwig, Raphael Abiry, Marien Ferdinandusse and Carolin Nerlich

The role of monetary policy under a low-carbon transition.

Jason Eis,* Vivid Economics; Rosie Dollman, Vivid Economics; Giulio Vannicelli, Vivid Economics; Pablo Anton Arnal, Vivid Economics; Warwick McKibbin, Australian National University. Report here.

Greening the Eurosystem collateral framework.

Yannis Dafermos,* SOAS, University of London; Daniela Gabor, University of the West of England; Maria Nikolaidi, University of Greenwich; Frank van Lerven, New Economics Foundation

Central banks’ mandate in green credit guidance: beyond prudential regulation.

Muriuki Muriungi,* University of Nairobi

Theme 5

Sovereign bonds and climate- and environment-related risk

Climate change and sovereign credit ratings

Matthew Agarwala,* University of Cambridge and University of East Anglia; Patrycja Klusak, University of Cambridge and University of East Anglia; Moritz Kramer, Goethe-University; Kamiar Mohaddes, University of Cambridge; Naoki Funada, University of Cambridge

The impact of country SDG performance on sovereign bond spreads.

Eline ten Bosch,* Rotterdam School of Management; Dirk Schoenmaker, Rotterdam School of Management; Mathijs van Dijk, Rotterdam School of Management

Sovereign risk and climate change.

Ulrich Volz,* SOAS, University of London and German Development Institute; John Beirne, Asian Development Bank Institute; Adrian Fenton, WWF Singapore; Emilie Mazzacurati, Four Twenty Seven and University of California, Davis; Nuobu Renzhi, Asian Development Bank Institute; Jeanne Stampe, SOAS, University of London. Report here. 
Theme 6

Sustainable Crisis Response Measures 

A Toolbox for Sustainable Crisis Response Measures for Central Banks and Supervisors. Simon Dikau, LSE Grantham Research Institute; Nick Robins, LSE Grantham Research Institute; Ulrich Volz, SOAS University of London and the German Development Institute.

What are the options for sustainable crisis response measures?

Kate Levick,* Third Generation Environmentalism; Claire Healy, Third Generation Environmentalism; Ronan Palmer, Third Generation Environmentalism; Aziz Durrani, South East Asian Central Banks (SEACEN) Research and Training Centre; Ulrich Volz, SOAS, University of London and German Development Institute; Dimitri Zenghelis, University of Cambridge. Link to the website.
Theme 7

Assessing the real-world effectiveness and impact of central bank and supervisory policies in greening the financial system

Energy transition intrasectoral dependencies under different monetary and supervisory policy scenarios

Moutaz Altaghlibi*, Sustainable Finance Lab, Utrecht University; Rens van Tilburg, Sustainable Finance Lab, Utrecht University

Assessing the effectiveness and impact of central bank and supervisory policies in greening the financial system across Asia

Adrian Fenton*, WWF-Singapore, Asia Sustainable Finance; Sylvain Augoyard, WWF-Singapore, Asia Sustainable Finance; Aziz Durrani, South East Asian Central Banks (SEACEN) Research and Training Centre; Jeanne Stampe, SOAS University of London, SOAS Centre for Sustainable Finance; Ulrich Volz, SOAS University of London, SOAS Centre for Sustainable Finance

Green Monetary Policy: Implications for Emissions, Investment, and Inflation

Kai Lessmann*, Potsdam Institute for Climate Impact Research; Emanuel Mönch, Deutsche Bundesbank, Goethe University Frankfurt

The Financial Geography of Green Finance Policy: Evaluating Policy Effectiveness across over 50 countries

Theodor Cojoianu*, University College Dublin, Queen’s University Belfast; Andreas Hoepner, University College Dublin & EU Technical Expert Group on Sustainable Finance; Michael Urban, University of Oxford; Dariusz Wojcik, University of Oxford. Report here.

Climate change and central bank asset purchases: An empirical investigation for the euro area and the UK

Yannis Dafermos*, SOAS University of London; Daniela Gabor, University of the West of England; Maria Nikolaidi, University of Greenwich; Frank van Lerven, New Economics Foundation(NEF)