This paper that explores the design of #climate#stresstests to assess #macroprudential#risks from #climatechange in the #financialsector. The authors review current climate stress #scenarios employed by #regulators, highlighting the need to consider dynamic policy choices, better understand feedback loops between climate change and the economy, and explore compound #riskscenarios. They argue that more research is needed to identify channels through which plausible scenarios can impact credit risks, incorporate #bank-lending responses to #climaterisk, assess the adequacy of climate #riskpricing in #financialmarkets, and better understand the process of expectations formation around the realizations of climate risks.