Central Banks and Climate Change: Key Legal Issues
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Summary:
Well-designed legal frameworks and institutional arrangments support the legitimacy of central banks’ autonomous decision-making when grounded on sound legal basis and can prevent over-stepping in the remit of other authorities. This paper explores the key legal intersections of climate change and central banks. Climate change could impact price and finanical stability, which are at the core of a central bank’s mandate. While central banks’ legal frameworks can support climate change efforts they also determine the boundaries of the measures they can adopt. Central banks need to assess their mandate and authority under their current legal frameworks when considering measures to contribute to the global response to climate change, while taking actions to fulfill their legal mandates.
Series:
Working Paper No. 2024/192
Subject:
Central bank legislation Central bank mandate Central Banks Climate change Climate finance Climate policy Environment Financial sector policy and analysis Financial sector stability Price stabilization Prices Quasi-fiscal operations
Frequency:
regular
English
Publication Date:
September 9, 2024
ISBN/ISSN:
9798400288395/1018-5941
Stock No:
WPIEA2024192
Format:
Paper
Pages:
46
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