On 8 and 9 October 2026, experts from CETEx contributed to two days of discussions in Abu Dhabi exploring the implications of climate change for monetary policy, financial stability and financing the transition.
The engagements began with the 2nd CBUAE Climate Forum, hosted by the Central Bank of the UAE (CBUAE) on 8 October, followed by the inaugural CBUAE Climate Research Seminar on 9 October, hosted by CBUAE in collaboration with CETEx. Both events were held in hybrid format, bringing together central bankers, policymakers, researchers and financial sector experts.
Together, the discussions explored a central challenge for policymakers and financial institutions: how to better understand the economic and financial implications of climate change while translating transition ambitions into practical policy and financing approaches.
Climate change, financial stability and monetary policy
The 2nd CBUAE Climate Forum examined the relationship between climate change, financial stability and monetary policy, as part of a wider programme addressing sustainable finance, climate data and the transition to a low-carbon, climate-resilient economy.
As part of the Forum, CETEx Executive Director, Rob Patalano, moderated the technical panel ‘Climate Change and Monetary Policy’, with CETEx Senior Policy Fellow, David Barmes joining Professor Dirk Broeders, Senior Lead Financial Risk Expert at the European Central Bank; Frank van Gansbeke, co-founder of Beyond Bretton Woods; and Edwin Millar, economist at the Bank of England and co-lead of the NGFS workstream on monetary policy.
The discussion focused on the integration of climate considerations in monetary operations and strategy, reflecting a wider theme running across the two days: the growing relevance of climate change to the questions facing central banks around monetary policy and financial stability.
CBUAE’s wider Forum also considered the role of sustainable finance in mobilising capital for the net-zero transition, alongside the importance of international cooperation and knowledge exchange. The Forum forms part of CBUAE’s efforts to embed sustainability principles within the financial sector and support the UAE’s transition towards net zero.
Connecting climate research and policymaking
These discussions continued on 9 October at the inaugural CBUAE Climate Research Seminar, hosted by CBUAE in collaboration with CETEx.
Designed to connect emerging research with practical policy questions, the seminar brought together researchers, policymakers and financial sector experts to examine developments across climate risk, sustainable investment, monetary policy and the challenges associated with the net-zero transition. CBUAE described the seminar as an opportunity to strengthen the use of research in addressing climate challenges and supporting the development of financial and banking policies.
Rob Patalano and Andreas Jobst, Chief of Monetary Policy at CBUAE and Co-Chair of the NGFS Workstream on Central Bank Operations, welcomed participants to a programme bringing together expertise from central banks, international institutions, regulatory authorities and research organisations. Sessions explored issues ranging from climate uncertainty and tipping points to climate shocks and monetary policy, climate risk and food inflation, sovereign ESG investing and approaches to greening monetary policy operations. Contributors included experts from CBUAE, the European Central Bank, International Monetary Fund, Bank for International Settlements, Network for Greening the Financial System and Bank of England, alongside CETEx, the TPI Global Climate Transition Centre (TPI Centre) and other policy and research organisations.
From transition pathways to financeable plans
The afternoon shifted the emphasis towards implementation and the practical challenges of financing the transition. Rob Patalano moderated a session on Transition Finance and Sectoral Financing Plans, bringing together CETEx colleagues, Visiting Senior Fellow Joseph Noss and Head of Sector Finance Plans Ben Fagan-Watson with Antonina Scheer Senior Policy Fellow and Deputy Director for Policy at the TPI Centre, and Alicia Kędzierski, Head of Department for ESG at the UK Financial Conduct Authority. CETEx and the TPI Centre both sit within LSE’s Global School of Sustainability, bringing complementary areas of expertise from across the School to the discussion.
Antonina opened the session by considering how institutional investors use transition finance data, before the discussion explored how credible sectoral plans can support governments, businesses, investors, regulators and central banks. Drawing on CETEx’s work in the UK, Ben highlighted the role that sector transition plans can play in building greater alignment between government, business, finance and civil society around a shared pathway for decarbonisation. Yet establishing the pathway is only part of the challenge. For transition plans to move from ambition towards implementation, they also need to address the practical question of how the transition will be financed.
Ben outlined CETEx’s work with the UK Net Zero Council, businesses and investors to develop financing plans that complement sector transition plans. This involves understanding investment requirements and financing gaps, identifying appropriate sources of capital, addressing policy dependencies, and considering how public finance and policy can help mobilise private investment. At their most effective, such plans can provide businesses with a clearer route to delivery, give finance providers greater clarity around investment requirements and barriers, and help governments connect decarbonisation objectives with wider economic priorities.
The discussion then returned to one of the themes running throughout the two days: turning climate and transition objectives into credible and investable pathways requires closer alignment between policy, finance and the real economy.
Mobilising private capital
A second afternoon session, also moderated by Rob Patalano, explored Private Capital Mobilisation and Blended Finance. CETEx Visiting Senior Fellow Michael Wilkins joined Wiebke Bartz-Zuccala, policy analyst at the OECD and Umberto Muranga, Director of Private Capital Mobilisation and Blended Finance at the Glasgow Financial Alliance for Net Zero for a discussion focused on the role of private capital and blended finance in supporting investment in the transition. Taken together, the two afternoon sessions broadened the discussion beyond identifying the overall investment required for the transition. They considered the policy environment, financing mechanisms and approaches needed to overcome barriers and help mobilise capital towards transition priorities.
Connecting research, policy and implementation
Across the two days, a consistent message emerged: addressing the economic and financial implications of climate change requires stronger connections between research, policy, finance and implementation. Research can deepen understanding of how climate-related shocks and structural change interact with inflation, monetary policy and financial stability. At the same time, credible transition and financing plans can help translate longer-term climate objectives into clearer pathways for investment and implementation.
For CETEx, the engagements provided an opportunity to contribute expertise spanning monetary policy, transition finance and capital mobilisation, while exchanging knowledge with central banks, regulators, international institutions and other experts working on the economic and financial dimensions of the transition. The collaboration between CBUAE and CETEx on the inaugural Climate Research Seminar also demonstrated the value of bringing research and policy communities together to explore emerging challenges and practical approaches to supporting the transition.
