Since the Paris agreement, the debate among researchers and practitioners on the solid role of central banks and financial regulators in supporting a smooth transition from a high to low carbon economy has been levitating. Few monetary authorities took a step to incorporate the policies mitigating the climate-related financial risks to their operational radar, creating a rather heterogeneous picture of climate action. This chapter sheds light on the current state-of-the-art debate on the involvement of central banks and financial regulators in green debate and their contribution in aligning the finance sector with sustainable transition roadmaps. We conduct our analyses through the lenses of different governance setups of money and financial regulatory authorities, finding that policy inaction is mainly connected to the conflict the integration of climate-related policy could bring to operational mandates. We highlight that the conflict can be less pronounced in a specific policy arrangement than the others respecting Tinbergen's principle.

Mind the gap: Monetary policy and financial regulations for supporting green finance

Lilit Popoyan;
2022

Abstract

Since the Paris agreement, the debate among researchers and practitioners on the solid role of central banks and financial regulators in supporting a smooth transition from a high to low carbon economy has been levitating. Few monetary authorities took a step to incorporate the policies mitigating the climate-related financial risks to their operational radar, creating a rather heterogeneous picture of climate action. This chapter sheds light on the current state-of-the-art debate on the involvement of central banks and financial regulators in green debate and their contribution in aligning the finance sector with sustainable transition roadmaps. We conduct our analyses through the lenses of different governance setups of money and financial regulatory authorities, finding that policy inaction is mainly connected to the conflict the integration of climate-related policy could bring to operational mandates. We highlight that the conflict can be less pronounced in a specific policy arrangement than the others respecting Tinbergen's principle.
9781800371958
9781800371941
9781800371958
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11367/111236
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact