Conclusion

This chapter has a twofold mission. It summarizes the main arguments of the book and connects the implications to current developments within financial governance. It shows how the hegemony of financial stability continues to dominate financial governance, and it extends the analysis to explore how climate risks have been framed within the paradigm of financial stability. It argues that financial stability continues to function as a hegemonic claim, extending its influence over how climate change is understood and managed in the financial realm. Central banks and financial regulators increasingly recognize climate risks – both physical and transitional – as potential threats to market stability. This recognition has facilitated the incorporation of climate finance into the regulatory framework, drawing on the macroprudential approaches established after the 2008 financial crisis. However, by reframing climate change primarily as a financial risk, this approach prioritizes market-based solutions and technocratic measures, often sidestepping the need for more radical structural changes to address the root causes of the environmental crisis. The chapter critically examines the implications of this framing, suggesting that while the inclusion of climate risks in financial governance represents a step forward, it also underscores the limits of the financial stability discourse.