This article reports on the latest trends in climate finance research. This article introduces the proceedings of the Finance Workshop titled "Advances in Climate Finance Research" held by the Bank of Japan Institute for Monetary and Economic Studies on November 8, 2024, published in Financial Research Vol. 44 No. 3 (July 2025 issue). The workshop was conducted in hybrid format with both in-person and online participation, featuring active discussions on the cutting edge of research into the relationship between climate change and financial markets.
The workshop featured three research reports, each with designated discussants for specialized examination. Active exchanges of opinions unfolded among participants, presenters, and discussants, with multifaceted discussions from both theoretical and practical perspectives in the climate finance field. Climate finance is an important field that rapidly developed in recent years, dealing with financing, investment decisions, and risk assessment necessary for climate change countermeasures.
Research content is believed to have covered the latest research findings including the impact of climate change on financial systems, effectiveness measurement of green finance, empirical analysis of ESG investment, climate-related financial policy by central banks, and climate risk management methods for financial institutions. These studies address important themes such as the role of the financial sector in achieving Paris Agreement goals, analysis of investment scales necessary for carbon neutrality realization, and impact assessment of climate change on financial stability.
The Bank of Japan Institute for Monetary and Economic Studies serves as an institution promoting theoretical and empirical research on finance and economics, playing a role in understanding the latest domestic and international research trends in the climate finance field and examining policy implications. This workshop is positioned as a valuable venue where academia, financial world, and policy authorities gather to share knowledge and discuss future research directions and policy issues.
This article sequentially introduces detailed proceedings of the workshop, with related publications including the Bank of Japan Institute for Monetary and Economic Studies Discussion Paper Series (DPS-J) also made available. The article concludes that advances in climate finance research have important significance for realizing sustainable economic society and ensuring financial system stability, requiring continued research and policy dialogue.