This report reviews the full range of policies and initiatives that an ideal green central bank would adopt across four categories: Research and Advocacy, Monetary Policy, Financial Policy, and Leading by Example. Based on this literature review, expert consultation, and bilateral interactions with central bankers and supervisors, Positive Money developed a system to score and rank G20 countries on the green policies and initiatives of their monetary and prudential authorities.
As a result, the vast majority of countries score full marks in Research and Advocacy while performing poorly across the other three categories. While some institutions have taken concrete action to assess environmental risks and incentivise green investments, all are shying away from policies that disincentivise or restrict financial flows to environmentally harmful activities.