Policy Lever: Upgrading Governance
ExamplesKey measures that could be taken include:
- Principles: Adopting principles for a sustainable financial system to guide policymaking.
- Policy & Legal Frameworks: Considering impacts on sustainability when developing and reviewing financial regulations, financial sector development plans, and legal frameworks.
- Roadmaps and plans: Developing long-term national strategies and roadmaps, supported by coordination mechanisms.
- Regulatory Mandates: Exploring the impact of sustainability factors for existing mandates of central banks and financial regulators and adjust where necessary.
- Performance Measurement: Developing a performance framework to assess and guide progress in developing sustainable financial systems.
ImpactThis is the area where there is least common current practice, but strong potential.
Monetary policy has been largely neglected in the worldwide discussions on green finance. Similarly, most central banks have not even started thinking about their role in helping society reach its environmental objectives and about the potential implications of environmental degradation for their mandates. Bringing light to this blind spot is critical. This report aims to