The article explores three green financial policies to tackle climate risks. The researchers used a model to study how climate change affects the economy and financial sector. They found that climate shocks worsen financial constraints and make banks more vulnerable to crises. Implementing green finance policies like capital requirements, public guarantees, and carbon-risk adjustments can reduce carbon emissions and climate impacts. However, some policies may lead to credit booms and financial instability. Combining all three policies can lead to emission reductions, stable finances, and economic growth, but more tools are needed to fully address climate change.