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Objectives: This article introduces the Climate-related Financial Policies Database and provides statistics on its main indicators. The database records many aspects of green financial policymaking for 74 nations for the period 2000–2020 by financial (central banks, financial regulators, supervisors) and non-financial (ministries, banking organizations, governments, and others) entities. The database is crucial for identifying and evaluating present and future trends in green financial policies, as well as the role played by central banks and regulators in raising green financing and taming financial instability caused by climate change. Data description: The database captures various aspects of financial (central banks and financial regulators and supervisors) and non-financial institutions' (ministries, banking associations, governments, and others) green financial policymaking in the period 2000–2020. Information is collected for the following variables: country/jurisdiction, economic development level (as defined by the World Bank Indicators), year of policy adoption, measure adopted and its bindingness, and authority/ies responsible for its implementation The database includes 74 countries, of which 39 are advanced economies, 20 are emerging, and 15 are developing economies. Open knowledge and data sharing encouraged by this article can support research in the developing field of financial policymaking related to climate change. [ABSTRACT FROM AUTHOR]

The proposed analysis investigates whether the type of central banks' monetary policy mandates and their financial stability governance arrangements influence the adoption of climate-related financial policies. The empirical findings confirm a statistically significant relationship between a broader monetary policy mandate and the adoption of climate-related financial policies. However, the hypothesis – informed by existing literature – that a more integrated financial stability governance model would imply a higher adoption of climate-related financial policies is not confirmed. Focusing on G20 countries in 2000–2018, the study reveals that a more complex financial stability governance based on less integrated arrangements is more successful for climate-related financial policy adoption. Other factors, such as the presence of a democratic regime, the independence of the central bank, and being a member of the Sustainable Banking Network, have a positive and (statistically) significant effect across all specifications. Moreover, the materialization of climate-related physical risks such as, e.g., floods, heatwaves, droughts, and storms, and transition risks proxied by – among others – CO2 emissions per capita, climate mitigation policies, and financial readiness to implement climate adaptation plans are also essential. The results are robust after considering a different dependent variable and several alternative model specifications. [ABSTRACT FROM AUTHOR]

This paper discusses how financial stability governance has evolved and how central banks and financial regulators are coping with the threats posed by climate uncertainty, providing an overview of G20 countries' green central banking experiences in the past 20 years. The analysis shows that most central banks realise their climate ambitions through financial stability mandates, leaving the monetary stability mandate unaffected. Considering the debate on market neutrality, the concerns on the risk of overstretching the central banks' mandate, violation of Tinbergen's principle and threats posed to central banks' independence, the provided evidence reveals a mismatch between the observed policy practice and its theoretical underpinnings. Drawing on these findings, we argue that effective green central banking governance should be based on a synthesis between monetary and macroprudential policymaking. [ABSTRACT FROM AUTHOR]

Abstract While there is a growing debate among researchers and practitioners on the possible role of central banks and financial regulators in supporting a smooth transition to a low-carbon economy, the information on which macroprudential instruments could be used for reaching the " green structural change " is still quite limited. Moreover, the achievement of climate goals is still affected by the so-called "green finance gap". This paper addresses these issues by proposing a critical review of existing and novel prudential approaches to incentivizing the decarbonization of banks' balance sheets and aligning finance with sustainable growth and development objectives. The analysis carried out in the paper allows understanding of under which conditions macroprudential policy could tackle climate change and promote green lending, while also containing climate-related financial risks. Highlights • Emerging economies are active adopters of mandatory green prudential instruments. • Several policy proposals currently discussed in advanced economies are prone to destabilizing effects. • A "one-size-fits-all" approach to greening the financial system does not exist. • Most promising green instruments are related to (bank) capital management. • Negative Capital Buffers and/or buffers built during the carbon-intensive credit cycle could be favorable too. [ABSTRACT FROM AUTHOR]