IMF Working Papers

Central Banks and Climate Change: Key Legal Issues

By Mario Tamez, Hans Weenink, Akihiro Yoshinaga

September 9, 2024

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Format: Chicago

Mario Tamez, Hans Weenink, and Akihiro Yoshinaga. "Central Banks and Climate Change: Key Legal Issues", IMF Working Papers 2024, 192 (2024), accessed November 21, 2024, https://doi.org/10.5089/9798400288395.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

Subject: Central bank legislation, Central bank mandate, Central Banks, Climate change, Climate policy, Environment, Financial sector policy and analysis, Financial sector stability

Keywords: Autonomous decision-making, Central Bank, Central bank development programs, Central bank legislation, Central bank mandate, Central bank's mandate, Climate Change, Climate policy, Core objective, Financial sector stability, Global, IMF working paper No. 24/192, Legal Framework

Publication Details

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