The major central banks and the fight against climate change: Assessing the latest policy initiatives
Fecha: enero 2024
Emma Navarro and Judith Arnal
Climate policy
SEFO, Spanish and International Economic & Financial Outlook, V. 13 N.º 1 (January 2024)
While it is widely acknowledged that climate policy-making is the prime responsibility of governments, central banks are also taking steps to address climate change within their remits. An examination of the integration of climate change considerations into the operations of the European Central Bank (ECB), the Bank of England (BoE), and the Federal Reserve (Fed) highlights that both the ECB and the BoE are more proactive than the Fed in their commitments and policy measures to tackle climate risks. Notably, the BoE has pioneered several initiatives, while the ECB has recently made more significant advancements in other areas related to supervision and collateral rules. The extent to which central banks integrate climate risks into their work varies depending on each institution’s respective mandate and domestic political preferences vis-à-vis climate change.