This report examines how prepared central banks currently are to take account of climate-related risks in their monetary policy operations.
The NGFS conducted review of 107 central banks aiming of analysing their institutional frameworks and balance sheet features. In addition, a questionnaire was sent to central banks worldwide to identify whether they are contemplating adjusting their operational frameworks to take account of climate-related issues in the implementation of monetary policy. 26 central banks representing 51 countries participated in the survey, affording a comprehensive and geographically diverse overview of the latest developments in the field.
The survey results confirm an increasing and shared awareness of climate-related risks among central banks, even if the concrete actions taken have been limited so far. This finding is indicative of a prudent approach attributable to the complexity of the matter (i.e. data availability issues and lack of standardisation) and the limited work done so far within central banks on how to implement possible measures in practical terms.