It is a fact that the environment is such that the neutral real interest rate… …that means the interest at which real GDP is growing at its trend rate and inflation is stable… … That this rate is negative at the moment and that it will be very low or even negative for quite a while.
We are already seeing financial institutions responding to climate-related risks by encouraging borrowers to adapt to and manage the risks associated with a changing climate, responding to investors’ demands for climate-friendly portfolios, and funding critical private-sector initiatives to move toward more climate-friendly business models.