The Role of Bank Regulators in the Promotion of Green and Climate Finance

Over the past years, interest has increased in including environmental and climate-related issues in central banks, financial regulators, and supervisors’ activities. The scientific discussion and actions taken by these institutions are presented in this chapter. It describes how central banks are increasingly seen as key players in advancing regulations supporting a low-carbon or “net-zero” agenda and illustrates future policy directions and the new policy tools that central banks and financial regulators need to consider as climate change and its economic consequences are anticipated to generate new risks for financial markets.