The Bank of England had launched the Bank’s Climate Biennial Exploratory Scenario exercise (CBES) in June 2019 to collaborate with the largest UK Banks and insurers to gain a better understanding of climate risks. This exercise which combined finance and climate outcomes and consisted of 3 scenarios: no action, late action and early action and understand how physical and transition risks combine.
Key learning objectives:
Outline the key aims of the CBES
What are policy levers Understand the macroeconomic impacts of shift to net zero
Understand the implications of monetary policy