This comprehensive briefing paper identifies policy tools used by central banks and financial supervisors in 188 countries during the Covid-19 crisis, assessing how climate and other environmental factors can be integrated into these strategies and wider operations. It finds that while over 20% of the institutions examined have scaled up their broader sustainability efforts since the beginning of the pandemic, less than 1% have directly connected their Covid-19 response to sustainability factors.
The report evaluates the sustainability of this crisis response in practice and highlights four priority areas for integrating sustainability factors into the ongoing pandemic response: collateral frameworks; asset purchase programmes, crisis facilities and refinancing operations; prudential measures; and management of central bank portfolios.
Looking ahead to the next phase of the crisis response, the report outlines policy tools available to central banks and financial supervisors. It also identifies a wide variety of monetary, prudential and other policy instruments, examining them by region and national income groups.
The study is jointly produced by the International Network for Sustainable Financial Policy Insights, Research, and Exchange (INSPIRE); Grantham Research Institute on Climate Change and the Environment at the London School of Economics; and Political Science and the Centre for Sustainable Finance at the School of Oriental and African Studies in London.
This report is a follow-up to an earlier report offering a framework for central banks and supervisors to align their Covid-19 response measures with the Paris agreement. However, it significantly expands the empirical assessment of the crisis response to include most central banks and supervisors.
This page was last updated April 22, 2021
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