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Warning words in a warming world: Central bank communication and climate change

2025/07/19 by Emanuele Campiglio, Jérôme Deyris, Davide Romelli +1 · 2 voices · 18 citations
Economics, Econometrics and Finance · Social Sciences · #Central bank #Climate Change Communication and Perception #Climate change #Computer science #Economics #Geology #Global warming #Keynesian economics #Market Dynamics and Volatility #Monetary policy #Natural resource economics #Oceanography #Sustainable Finance and Green Bonds #Telecommunications #Warning system

paper · doi:10.1016/j.euroecorev.2025.105101

published in European Economic Review 178, 105101 (Elsevier BV)

openalex publication_date 2025/07/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/18

Abstract

We study climate-related central bank communication using a novel dataset containing 35,487 speeches delivered by 131 central banks from 1986 to 2023. We employ natural language processing techniques to identify and trace the evolution of key climate-related narratives centred around (i) green finance, and (ii) climate-related financial risks. We find that central bank public communication strategies are primarily driven by underlying institutional factors, rather than exposure to climate-related risks. We then study the impact of climate-related communication on financial market dynamics through both a portfolio and a firm-level analysis. We find that equity returns of ‘green’ firms outperform those of ‘dirty’ firms when central banks engage more frequently and intensely with climate-related topics.

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