Course Outline

Module 1: Introduction to Climate Change and Financial Stability

• Overview of climate change science and impacts
• The concept of financial stability in the context of climate change
• Global and regional trends in climate-related financial risks

Module 2: Climate Risk Categories and Impacts on the Financial System

• Physical risks: acute and chronic impacts
• Transition risks: policy, technology, and market shifts
• Liability risks: litigation and regulatory actions

Module 3: Frameworks for Climate Risk Assessment

• The TCFD (Task Force on Climate-related Financial Disclosures) framework
• Scenario analysis and stress testing methodologies
• Developing climate risk indicators and metrics

Module 4: Integrating Climate Risk into Prudential Regulation

• Principles for integrating climate risk into capital adequacy requirements
• Guidelines for risk management and governance
• Best practices for supervisory practices and regulations

Module 5: Supervisory Practices and Climate Risk Monitoring

• Tools and techniques for ongoing risk monitoring
• Case studies on supervisory approaches to climate risk
• Developing guidelines for climate risk disclosures

Module 6: Stress Testing and Scenario Analysis

• Designing climate stress tests and scenarios
• Implementing scenario analysis frameworks
• Case studies on stress testing outcomes and lessons learned

Module 7: Role of Central Banks in Promoting Sustainable Finance

• Policy tools for promoting green finance and sustainable investments
• Central bank initiatives in climate risk assessment and disclosure
• Examples of central bank actions in sustainable finance

Module 8: Legal and Regulatory Innovations for Climate Resilience

• Developments in climate-related regulations and legislation
• Case studies of regulatory innovations globally
• Challenges and opportunities in regulatory reform

Module 9: Incentives and Support Mechanisms for Green Finance

• Financial incentives: subsidies, taxonomies, and grants
• Risk-sharing mechanisms and public-private partnerships
• Case studies on successful green finance initiatives

Module 10: Monitoring, Reporting, and Disclosure Standards

• International and national disclosure standards (e.g., TCFD, NGFS)
• Best practices in climate-related reporting and transparency
• Tools and technologies for enhancing data collection and reporting