Monetary policy

Central banks and financial regulators can use monetary policy tools, such as interest rates, to support the transition towards a greener economy.


The scorecard, produced by Positive Money and Green Central Banking, ranks green policies adopted by G20 central banks. Examples of progress on monetary policy are outlined below – explore the scorecard for more information.

High Impact

  • No central banks have implemented high-impact monetary policy initiatives as yet.

Medium Impact

  • Bank of Japan offers zero interest funding directed at projects contributing towards Japan’s climate goals.
  • Bank of England committed to greening the corporate bond purchase scheme
  • The ECB will incorporate climate considerations into frameworks for collateral and corporate sector asset purchases.
  • Banco de Mexico discussing inclusion of data on individuals and businesses sanctioned by the environmental protection agency.

Low Impact

  • Banco Central do Brasil using sustainability criteria and CO2 monitoring in international reserve management.
  • Bank of Canada purchasing Canada’s green sovereign bonds as part of asset purchase programme.
  • People’s Bank of China issued guidance on including environmental factors in credit decisions, and increasing green bonds allocation in foreign exchange reserves.
  • Bank of Indonesia issued green lending guidelines for mini-hydro power projects.

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