The SEACEN Centre’s latest working paper investigates the growing role of central banks in promoting sustainable policymaking, with a focus on strategies for mitigating climate risk through financial choices. Asian central banks have established essential frameworks, green bond markets and taxonomy guidelines that promote the development of sustainable finance. In fact, climate-related risks can be incorporated into their current mandates, aligning investment strategies with climate objectives without sacrificing their primary goals of price and financial stability. Four structural challenges remain: gaps in data and disclosures, conflicting national policies, geopolitical complexities, and the unique roles of central bank portfolios, suggesting that improved governance, international collaboration and standardised frameworks are vital for effectively integrating green strategies into central banking operations.
Click here to read the full paper!
