Central banking and sustainability / edited by Kern Alexander, Seraina Grünewald.

Format:

Book

Contributor:

Alexander, Kern, 1962- editor.

Grünewald, Seraina Neva, editor.

Language:

English

Subjects (All):

Banks and banking, Central.

Economic development.

Banks and banking, Central--Law and legislation.

Physical Description:

1 online resource (xii, 372 pages) : illustrations (black and white), digital, PDF file(s)

Edition:

1st ed.

Place of Publication:

Cambridge : Cambridge University Press, 2026.

Summary:

This text systematically assesses the role of central banks in matters of sustainability, analysing central bank mandates in different parts of the world, studying different functions and instruments of central banks, and engaging in discussions on what can and should guide central banks as they pursue new sustainability-related objectives.

Contents:

Cover

Half-title

Title page

Imprints page

Table of Contents

List of Figures

List of Tables

List of Contributors

Introduction

1 What Role for Central Banks in Fostering Sustainability?

1.1 Introduction

1.2 Sustainability: Which Aspects and Risks Are Central Banks Mostly Concerned with?

1.3 Sustainability as a New Objective of Central Banks: Interpreting Mandates

1.4 Understanding and Managing Sustainability Risks

1.5 In Search of Guidance: Market Neutrality, Policy Coordination, and Democratic Legitimacy

1.6 Key Findings in an Ongoing Discussion

Part I Sustainability as a New Objective of Central Banks: Interpreting Mandates

2 The Green Mandate of the Bank of England

2.1 Introduction

2.2 General Observations on Central Bank Mandates and Objectives

2.3 The Bank of England's Mandate and Environmental Sustainability

2.4 The Bank of England's Mandate and Secondary Objectives

2.5 How Can Secondary Objectives Operate in Practice?

2.6 Secondary Objectives, Legal Uncertainty and Climate Change

2.7 Should Central Banks Discriminate in Favour of Green Assets?

2.8 Conclusion

References

3 Environmental and Social Sustainability in the Mandate of the European Central Bank

3.1 Introduction

3.2 Climate Change and the ECB's Mandates: Primary and Secondary Objectives, Prudential Tasks, and Transversal Provisions

3.3 Arguments of ''Fit'' (''Whether'') and the Courts: Standards of Review

3.4 Conclusion

4 The Federal Reserve Mandate and Environmental and Social Sustainability

4.1 Introduction

4.2 Historical Origins of the US Central Banking

4.3 The Federal Reserve System's Mandate and Objectives

4.4 The Fed's Mandate and Financial Stability

4.5 Central Banking and Environmental Sustainability

4.6 The Federal Reserve and Climate Change.

4.7 The Federal Reserve and Sustainability

4.8 Conclusion

5 Reshaping Mandates in Emerging Markets and Developing Countries: What Role for Central Banks in Countries Strongly Affected by Climate Change?

5.1 Introduction

5.2 Climate Change and Risks to Macroeconomic and Financial Stability

5.3 Climate Risks and Central Banks: Revisiting Mandates

5.4 Emerging Market and Developing Country Considerations

5.5 Conclusion

6 Is Net-Zero Central Banking Possible in the Caribbean?

6.1 Introduction

6.2 What Is Net-Zero Central Banking?

6.3 The Climate Vulnerabilities of Caribbean States

6.4 The Legal Significance of Central Banks' Mandates

6.5 Can a Sustainability Mandate Be Implied, or Must This Be Part of a Stated Objective?

6.6 Mandates of Selected Central Banks in the Caribbean Region: Can They Extend to Climate-Related Risks or a Sustainability Objective?

6.7 What Do the Caribbean Mandates Allow in the Context of Net-Zero Central Banking?

6.8 What Are the Caribbean Central Banks Doing in Response to Climate Change?

6.9 Policy Considerations and Recommendations

6.10 Recommended Four-Point Plan of Action to Advance the Prospect of Net-Zero Central Banking in the Caribbean

6.11 Conclusion

Part II Understanding and Managing Sustainability Risks

7 Sustainable Central Bank Balance Sheets and Operations

7.1 Introduction

7.2 The Central Bank Balance Sheet

7.3 Greening the Balance Sheet

7.4 The Future of Central Bank Balance Sheets

7.5 The Choice of Assets Is the Green Issue

7.6 Summary and Conclusion

8 Climate-Related Risks, Systemic Risks, and Macroprudential Regulation

8.1 Introduction

8.2 Climate-Related Risks Are a Potential Systemic Risk for the Financial Sector

8.3 Macroprudential Framework and Climate-Related Systemic Risks.

8.4 Adapting Macroprudential Policy to Climate-Related Systemic Risks

8.5 Conclusion

9 Central Bank Supervisory Role: Microprudential Supervision and Regulation of ESG Risks

9.1 Introduction

9.2 Microprudential Regulation and ESG Risks

9.3 Supervisory Approaches to Sustainability Factors and the Relevance of the Supervisory Architecture

9.4 Conclusion

10 Operationalising the Climate Change Action Plan of the European Central Bank: Legal Considerations

10.1 Introduction

10.2 Macroeconomic Forecasts and Models

10.3 Statistical Information for Climate Change Risk Analyses

10.4 Enhancement of Risk Assessment Capabilities

10.5 Asset Purchase Programmes

10.6 Collateral

10.7 Other Monetary Policy Measures

10.8 Governance and Accountability

10.9 Conclusion

11 Designing Stress Tests for Sustainability Risks

11.1 Introduction

11.2 Purpose of Supervisory Climate Stress Testing Exercises

11.3 Overview of Climate Stress Testing Exercises Conducted by National Authorities around the Globe

11.4 Differences between Climate-Related and Traditional Stress Testing Exercises

11.5 Relevant Methodological Features of Climate Stress Test Exercises

11.6 How to Make the Best Use of Climate Stress Test Exercises from a Supervisory Perspective

11.7 Conclusion

12 Central Bank Digital Currencies and Financial Inclusion

12.1 Introduction

12.2 Background: CBDCs as a Reaction to Global Stablecoins

12.3 The Role of Financial Inclusion

12.4 Understanding the Challenges of CBDCs and Evaluating Potential Alternatives

12.5 Conclusion

Part III In Search of Guidance: Market Neutrality, Policy Coordination, and Democratic Legitimacy

13 Capital Allocation by Monetary Authorities: Law, Theory, and Practice

13.1 Introduction.

13.2 Central Bank Operations in Market Perspective

13.3 Three Examples of Capital Allocation

13.4 Constitutional Implications

14 The Law and Politics of Independent Policy Coordination: Fiscal and Sustainability Considerations in the European Central Bank's Monetary Policy

14.1 Introduction

14.2 The ECB's Early Views on Policy Coordination: Developing ''Independent Policy Coordination''

14.3 The Momentum of ''Whatever It Takes'' and the Climate Crisis: ECB Post-Crisis Views on Policy Coordination

14.4 Legal Framework for Independent Policy Coordination

14.5 Conclusion

15 On the Democratic Legitimation of Climate Change Mitigation Activities of Independent Central Banks

15.1 Introduction

15.2 The Central Banks' Embracing of Climate Change

15.3 On the Relevance of Climate Change Mitigation-Related Activities for the Democratic Legitimacy of Independent Central Banks

15.4 Securing the Democratic Legitimacy of Climate Change Mitigation-Related Activities of Independent Central Banks

15.5 Conclusion

Index.

Notes:

Title from publisher's bibliographic system (viewed on 05 Feb 2026).

Includes bibliographical references and index.

Description based on online resource; title from PDF title page (viewed on February 17, 2026).

Description based on publisher supplied metadata and other sources.

ISBN:

1-009-45043-3

1-009-45042-5