There is growing acknowledgement among policymakers that climate change may give rise to potentially catastrophic financial risk and impact financial stability. This chapter explores the specific features of climate-related financial risks (CRFR), drawing on a growing body of macrofinancial literature and policy work, and discusses the options macroprudential policymakers have in the face of such risk. It finds that there are significant challenges associated with ‘greening’ macroprudential policy, both epistemological and methodological as well as behavioural, and points to potential ingredients of a ‘green’ macroprudential policy. In the light of the radical uncertainty in relation to the dynamics of CRFR, the timing of policy action is of the essence. The chapter, in particular, explores the merits and challenges associated with a precautionary approach to tackling the systemic effects of CRFR. Finally, it briefly discusses the role that Central Banks can and should play in the transition to a low-carbon economy, both within the confines and in fulfilment of their price and financial stability mandates.