On 28 February 2020, the President of the Dutch Central Bank (De Nederlandsche Bank), Klaas Knot, gave a speech at the High Level Conference of the IMF Constituency Group in which he discussed how the Netherlands has faced energy transitions in the past, and how such transitions present threats, as well as opportunities.
In his speech, Klaas Knot mentions that financial institutions are facing different challenges resulting from the energy transition and that better tools need to be developed to assess how the transition will affect these financial institutions. He confirms that DNB is working on this (at a national level and in international fora). A further challenge for DNB being a central bank is that DNB does not only need to consider individual financial institution’s vulnerabilities, but also the vulnerability of the financial system as a whole. To assess the potential financial stability risks arising from a disruptive energy transition, DNB has developed a transition risk stress test.