The Green Central Banking Scorecard, produced by Positive Money and Green Central Banking, scores and ranks the full range of green policies and initiatives adopted by G20 central banks. The analysis is based on a literature review, expert consultations, and bilateral interactions with central bankers and supervisors.

Key developments since the previous edition include:

  • While some central banks have made progress, none are responding in any meaningful way to the radical uncertainty climate and ecological crisis brings. Even the highest scorers failed to rise above a C grade.
  • France claimed the top spot, largely due to the Banque de France’s responsible investment charter, which includes a phased withdrawal from fossil fuel investments.
  • China slipped from first place due to credit guidance favouring domestic coal production. However, PBoC’s recent credit guidance on limiting overseas coal investments is acknowledged, and keeps China at number three.
  • The position of the EU improved slightly, overtaking the UK, thanks to the European Central Bank’s climate action plan, and consideration of climate capital rules and bank portfolio restrictions. These moves also benefited France, as well as Italy and Germany.
  • Despite some action on addressing climate risk, a lack of significant policy changes from the Federal Reserve means the US slid down to joint 14th place.

This edition was published in October 2021.

Rank Country Aggregate Score (out of 130) Grade (A+ to F) Research and Advocacy (out of 10) Monetary Policy (out of 50) Financial Policy (out of 50) Leading by Example (out of 20)
1 FranceFrance 52 C 10 8 26 8

Central Bank/Supervisor

Banque de France, Autorité de Controle Prudentiel, European Central Bank, European Banking Authority

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • Banque de France (including ACPR) is a member of the NGFS

Low-impact

Monetary Policy

8 out of 50

High-impact

  • N/A

Medium-impact

  • Incorporation of climate change considerations into the collateral framework (formal commitment)

  • Incorporate climate considerations into the framework for corporate sector asset purchases (formal commitment)

Low-impact

  • ECB accepts sustainability-linked bonds as collateral

  • ECB will make environmental sustainability disclosures a condition of eligibility in collateral purchases (formal commitment)

  • ECB will make environmental sustainability disclosures a condition of eligibility in the corporate sector purchase programme (formal commitment)

  • ECB purchased green bonds under both the CSPP and the public secotr purchase programme (PSPP)

Financial Policy

26 out of 50

High-impact

  • Climate-related quantitative and qualitative restrictions on banks’ portfolios (under discussion at ECB)

Medium-impact

  • Mandatory sustainability-related disclosure in the financial services sector

  • Banks are required to integrate climate and environmental risks into risk management practices

  • ECB conducted an economy-wide climate stress test (results available here)

  • Microprudential climate-related capital-based measures (under discussion at ECB and EBA)

  • Macroprudential climate-related capital-based measures (under discussion at ECB and EBA)

  • Requirement for banks to publish Paris-compatible transition plans (under discussion at ECB)

Low-impact

  • ACPR issued a guide on good practices in the governance and management of climate-related financial risks by French banking institutions

  • ACPR conducted a climate stress test on the main French banking and insurance groups (results published here – downgraded from medium impact as it was a voluntary pilot that resulted in no new regulation)

  • EBA launched a consultation to incorporate ESG risks into the governance, risk management and supervision of credit institutions and investment firms

  • EBA ran a consultation on Pillar 3 disclosures of ESG risks

  • ECB ran a public consultation on its guide on climate and environmental risks

  • Mandatory carbon reporting specifically for French institutional investors

  • ECB will develop new statistical indicators to assess the carbon footprint of banks, as well as their exposures to climate-related physical risks (formal commitment)

  • ECB will review how credit ratings reflect climate risk (formal commitment)

Leading by Example

8 out of 20

High-impact

  • N/A

Medium-impact

Low-impact

2 BrazilBrazil 51 C 10 18 19 4

Central Bank/Supervisor

Banco Central do Brasil

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • Member of NGFS

Low-impact

Monetary Policy

18 out of 50

High-impact

  • N/A

Medium-impact

  • Ban on financing for sugar cane crop expansion in the Amazon, Pantanal and other zones

  • Condition on rural credit in the Amazon whereby borrowers must show proof of environmental compliance (study on impact on deforestation – criteria have recently been expanded and strenghtened)

  • ‘Green Liquidity Facility’ (formal commitment – latest BCB report refers to this as the ‘sustainable financial liquidity facility’)

  • ‘Green Bureau of Rural Credit’ and incentives for green rural credit (formal commitment – latest BCB report refers to this as the ‘Sustainable Rural Credit Bureau’)

Low-impact

  • Sustainability criteria in the management of international reserves and monitoring of CO2 emissions to assess portfolio’s carbon profile

  • Public consultation on sustainability criteria applicable to rural credit operations

Financial Policy

19 out of 50

High-impact

  • N/A

Medium-impact

  • Financial institutions are required to disclose social, environmental and climate risks

  • Financial institutions are required to implement a Policy for Socio-Environmental Responsibility (PRSA) “consisting of a set of principles and guidelines involving social, environmental and climate related aspects that orientate business conduct, company activities and relations with stakeholders” (updated regulation including ‘climate’ available here)

  • Financial institutions are required to incorporate socio-environmental risks into their risk management and governance structures (updated regulation including climate risks available here)

  • Inclusion of climate risk scenarios in new and improved system-wide stress tests (formal commitment)

Low-impact

  • Creation of new indicators to monitor social, environmental, and climate risk (formal commitment)

  • Public consultation on regulation on risk management and social, environmental and climate responsibility

Leading by Example

4 out of 20

High-impact

  • N/A

Medium-impact

  • N/A

Low-impact

3 ChinaChina 50 C 10 17 23 0

Central Bank/Supervisor

People's Bank of China, China Banking and Insurance Regulatory Committee

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • PBoC is a member of NGFS

Low-impact

Monetary Policy

17 out of 50

High-impact

  • N/A

Medium-impact

  • Banks must offer reduced interest rates for loans to pollution control facilities, environmental protection and infrastructure, renewable energy, etc (referred to here)

  • PBoC’s Notice Regarding Promoting Credit Asset and Collateral in Central Bank Evaluation established green bonds, loans, and securities with an AA rating and above accepted as collateral in medium-term lending facility and green loans accepted as part of the standing lending facility (referred to here)

  • Interest rate provided to banks on required reserves may be increased if the bank is assessed to be greener in the PBoC’s macroprudential assessments (referred to here)

Low-impact

  • PBoC issued Notice on Issues Relating to Improving Environmental Protection in Credit Policy, which provided guidance for banks on “how to better include environmental variables in credit decisions” (referred to here)

  • PBoC is increasing the allocation of green bonds in the country’s foreign exchange reserves

Financial Policy

23 out of 50

High-impact

  • N/A

Medium-impact

  • Banks are required to incorporate environmental risks into risk management and governance processes (see, for example, 2012 Notice on Issuing Green Credit Guidelines, referred to here)

  • Banks are required to shift lending towards environmentally friendly projects (see, for example, 2007 “Opinions on Implementing Environmental Protection Policies and Rules and Preventing Credit Risks” and the 2012 “Notice on Green Credit Guidelines” referred to here)

  • Banks are required to shift lending away from unsustainable projects (see, for example, 2007 “Opinions on Implementing Environmental Protection Policies and Rules and Preventing Credit Risks” and the 2012 “Notice on Green Credit Guidelines” referred to here – points temporarily suspended due to China’s current domestic credit guidance towards coal production)

  • Mandatory climate risk disclosure for all financial firms (formal commitment – referred to here)

  • Lower risk weights for green assets (under discussion – referred to here)

Low-impact

  • CBRC issued Opinions on Energy Efficiency and Emission Reductions in Credit Extension, which provided “specific guidance on how banks can contribute to national environmental goals” (referred to here)

  • CBRC’s Notice of Submission of Green Credit Statistics requires that the 21 main banks report green credit statistics (referred to here)

  • CBRC Notice of the Key Performance Indicators of Green Credit Implementation, which established “quantitative and qualitative indicators for assessing performance” (referred to here)

  • CBIRC issued guidelines on incorporating ESG requirements into the entire credit granting process (referred to here)

  • CBIRC is encouraging banks to set up green finance divisions and branches and develop green financial products (referred to here)

  • CBIRC issued guidelines on ESG-related information disclosure, reporting and interaction with stakeholders (referred to here)

  • CBIRC issued guidelines on environmental risk management systems (referred to here)
    Inclusion of green bonds in the Green Finance Evaluation Plan, which will assess the share of green bonds in financial institutions’ total assets

  • PBoC has said it will “not build coal-fired power plants abroad” (as the statement was vague and details are yet to be provided, this is a ‘low impact’ policy)

Leading by Example

0 out of 20

High-impact

  • N/A

Medium-impact

  • N/A

Low-impact

  • PBoC, CSRC, NDRC announced updated green bond guidelines which exclude ‘clean coal’ (referred to here), but the Green Industry Guidance Catalogue still includes ‘clean utilisation of coal’

  • PBoC is also working with Europe on a joint taxonomy (referred to here)

4 European UnionEuropean Union 47 C- 10 8 23 6

Central Bank/Supervisor

European Central Bank and European Banking Authority

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • ECB and EBA are members of the NGFS

Low-impact

Monetary Policy

8 out of 50

High-impact

  • N/A

Medium-impact

  • Incorporation of climate change considerations into the collateral framework (formal commitment)

  • Incorporate climate considerations into the framework for corporate sector asset purchases (formal commitment)

Low-impact

  • ECB accepts sustainability-linked bonds as collateral

  • ECB will make environmental sustainability disclosures a condition of eligibility in collateral purchases (formal commitment)

  • ECB will make environmental sustainability disclosures a condition of eligibility in the corporate sector purchase programme (formal commitment)

  • ECB purchased green bonds under both the CSPP and the public sector purchase programme (PSPP)

Financial Policy

23 out of 50

High-impact

  • Climate-related quantitative and qualitative restrictions on banks’ portfolios (under discussion at ECB)

Medium-impact

  • Mandatory sustainability-related disclosure in the financial services sector

  • Banks are required to integrate climate and environmental risks into risk management practices

  • Economy-wide climate stress test (results available here)

  • Microprudential climate-related capital-based measures (under discussion at ECB and EBA)

  • Macroprudential climate-related capital-based measures (under discussion at ECB and EBA)

  • Requirement for banks to publish Paris-compatible transition plans (under discussion at ECB)

Low-impact

  • EBA ran a consultation to incorporate ESG risks into the governance, risk management and supervision of credit institutions and investment firms

  • EBA ran a consultation on Pillar 3 disclosure of ESG risks

  • ECB ran a public consultation on its guide on climate and environmental risks

  • ECB will develop new statistical indicators to assess the carbon footprint of banks, as well as their exposures to climate-related physical risks (formal commitment)

  • ECB will review how credit ratings reflect climate risk (formal commitment)

Leading by Example

6 out of 20

High-impact

  • N/A

Medium-impact

  • N/A

Low-impact

5 United KingdomUnited Kingdom 46 C- 10 6 23 7

Central Bank/Supervisor

Bank of England

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • Member of NGFS

Low-impact

Monetary Policy

6 out of 50

High-impact

  • N/A

Medium-impact

Low-impact

  • Due Diligence Questionnaires on collateral holdings (referred to in our bilateral interactions)

  • Public consultation on greening the CBPS

  • Green gilts eligible in market operations

Financial Policy

23 out of 50

High-impact

  • N/A

Medium-impact

Low-impact

Leading by Example

7 out of 20

High-impact

  • N/A

Medium-impact

  • N/A

Low-impact

6 ItalyItaly 45 C- 10 8 23 4

Central Bank/Supervisor

Banca d'Italia, European Central Bank, European Banking Authority

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • Banca d’Italia is a member of NGFS

Low-impact

Monetary Policy

8 out of 50

High-impact

  • N/A

Medium-impact

  • Incorporation of climate change considerations into the collateral framework (formal commitment)

  • Incorporate climate considerations into the framework for corporate sector asset purchases (formal commitment)

Low-impact

  • ECB accepts sustainability-linked bonds as collateral

  • ECB will make environmental sustainability disclosures a condition of eligibility in collateral purchases (formal commitment)

  • ECB will make environmental sustainability disclosures a condition of eligibility in the corporate sector purchase programme (formal commitment)

  • ECB purchased green bonds under both the CSPP and the public secotr purchase programme (PSPP)

Financial Policy

23 out of 50

High-impact

  • Climate-related quantitative and qualitative restrictions on banks’ portfolios (under discussion at ECB)

Medium-impact

  • Mandatory sustainability-related disclosure in the financial services sector

  • Banks are required to integrate climate and environmental risks into risk management practices

  • Economy-wide climate stress test (results available here)

  • Microprudential climate-related capital-based measures (under discussion at ECB and EBA)

  • Macroprudential climate-related capital-based measures (under discussion at ECB and EBA)

  • Requirement for banks to publish Paris-compatible transition plans (under discussion at ECB)

Low-impact

  • EBA launched a consultation to incorporate ESG risks into the governance, risk management and supervision of credit institutions and investment firms

  • EBA ran a consultation on pillar 3 disclosure of ESG risks

  • ECB ran a public consultation on its guide on climate and environmental risks

  • ECB will develop new statistical indicators to assess the carbon footprint of banks, as well as their exposures to climate-related physical risks (formal commitment)

  • ECB will review how credit ratings reflect climate risk (formal commitment)

Leading by Example

4 out of 20

High-impact

  • N/A

Medium-impact

  • N/A

Low-impact

  • Contributed to the development of the EU taxonomy

     

  • Disclosure of own climate risks (formal commitment)