Year: 2021
Type: article
Abstract: This article examines how addressing climate-related risks and supporting mitigation and adaptation policies fit into central bank mandates. We conduct an analysis of mandates and objectives using the IMF's Central Bank Legislation Database and compare these to sustainability-related policies central banks have adopted in practice. Out of 135 central banks, only 12% have explicit sustainability mandates, while 40% are mandated to support the government's policy priorities, which mostly include sustainability goals. However, given that climate risks can directly affect central banks' traditional core responsibilities, all institutions ought to incorporate climate-related physical and transition risks into their policy frameworks to safeguard macro-financial stability.
Source: Ecological Economics
Authors: Simon Dikau, Ulrich Volz
Institution: London School of Economics and Political Science
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: hybrid
Estimated APC paid: $3,580
Funders: Asian Development Bank, London School of Economics and Political Science, Deutsche Bundesbank, De Nederlandsche Bank, Centre for Climate Change Economics and Policy, University of Leeds, Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, Economic and Social Research Council
Award: G812261337
OpenAlex ID: W2945847805