Central banks help to set the rules for how the economy works. And no central banks are more important than those of the G20 countries, who are responsible for the vast majority of global emissions. That’s why, ahead of COP26, Positive Money and Green Central Banking are ranking the climate policies of the G20 countries in four categories: research and advocacy; monetary policy; financial policy; and leading by example.

The research uses literature reviews, expert consultations, and bilateral interactions with central bankers and supervisors to expose the best and the worst out there right now. Take a look:

central banks ranking chart

Since the last ranking, France and India are moving up, but the UK, US and China are moving down the leaderboards. These latest scores show that most countries are stuck in the discussion and research phases without translating those into climate action. Here are some key findings:

  • While some central banks have made progress, none are responding in any meaningful way to the radical uncertainty climate and ecological crisis brings. Even the highest scorers failed to rise above a C grade.
  • France claimed the top spot, largely due to the Banque de France’s responsible investment charter, which includes a phased withdrawal from fossil fuel investments.
  • China slipped from first place due to credit guidance favouring domestic coal production. However, PBoC’s recent credit guidance on limiting overseas coal investments is acknowledged, and keeps China at number three.
  • The position of the EU improved slightly, overtaking the UK, thanks to the European Central Bank’s climate action plan, and consideration of climate capital rules and bank portfolio restrictions. These moves also benefited France, as well as Italy and Germany.
  • Despite some action on addressing climate risk, a lack of significant policy changes from the Federal Reserve means the US slid down to joint 14th place.

Picture of tweet from GCB


See the full scorecard here: https://greencentralbanking.com/scorecard/?utm_source=blog