Publications

China Report: Monetary Policy and Green Finance

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 make a contribution in this direction. Its starting point is the recognition that the conduct and effects of monetary policy are shaped by myriad factors. Rules and structures of the international monetary system (IMS)  mandates and objectives of central banks , as well as the instruments they apply, define their policy space and framework of reference. Understanding these building blocks and how they relate to each other is critical in exploring the links between monetary policy and green finance.