Global Financial Stability Report, October 2021

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Chapter 3: Investment Funds: Fostering the Transition to a Green Economy

This chapter analyzes the role that the global investment fund sector can play to support the urgently needed transition to a green economy, as well as the risks to the sector arising from this transition. The chapter’s findings suggest that policymakers should strengthen the global climate information architecture to foster climate finance markets, ensure proper regulatory oversight to prevent greenwashing, and conduct scenario analysis and stress testing to mitigate financial stability risks.

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