The goal of the Bank of Finland’s climate work is to spread knowledge and debate around sustainable finance and to enhance expertise in this area.

Due to climate change, extreme weather events will become more frequent, resulting in material damage to buildings and other infrastructure. In Finland, for example, this will probably increase the risk of coastal floods.

The need for sustainable finance has grown because of the urgency to mitigate climate change.

A key question in sustainable finance is finding ways for reorienting investments more rapidly and effectively, but at the same time in a balanced manner, towards supporting emission reduction targets.

Assessing the risks and costs arising from climate change – its effects, mitigation and, in the worst case, failure to mitigate – presents a major challenge for financial sector participants.

The macroprudential toolkit needs to be replenished with borrower-based instruments that take into account loan applicants’ repayment ability and are able to curtail household indebtedness as a whole.

The euro area’s monetary policy stance is conducive to economic growth and employment in Finland.

A significant proportion of the world’s investment assets lie with companies whose business activities produce large amounts of carbon dioxide. In the future, restrictions on carbon emissions could lower the value of these companies.