Green Central Banking

🇺🇸🇨🇳 @climateandcap.bsky.social’s @petermckillop.bsky.social takes a look at how Kevin Warsh’s “Contraband” climate doctrine could hand China a green finance edge.

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Economic models need to go beyond GDP to account for climate change Modelling needs to incorporate wider factors such as mortality and capital loss to better anticipate climate impacts, say researchers.

Regulators need to move beyond traditional economic models to assess and understand the devastating and compounding impacts of climate change, a study from the @exeter.ac.uk, @carbontracker.bsky.social and Aurora Trust found.

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Hong Kong adds transition label to taxonomy, but gas looms in next phase Hong Kong’s updated taxonomy has stricter energy sector emissions thresholds than Singapore and Thailand. But the inclusion of gas in the next phase needs to be closely watched, say experts.

Hong Kong has become the latest country in Asia to introduce a transition category to its taxonomy, as part of efforts to raise more capital for the decarbonisation of high-emitting sectors in the city, as well as across China and the rest of the region.

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What is the petrodollar and why is it under pressure? US designs on Venezuela and Greenland have raised questions about the future of the petrodollar system, as other countries explore other currencies and green energy becomes cheaper than oil.

US designs on Venezuela and Greenland have raised questions about the future of the petrodollar system, as other countries explore other currencies and green energy becomes cheaper than oil, writes @ingridwss.bsky.social.

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Canada's public pension fund faces beneficiaries in court over fossil fuel investments A new kind of lawsuit is holding one of the largest pension funds in the world to account for fossil fuel investments, say campaigners Cheryl Randall and Patrick DeRochie.

🇨🇦 A new kind of lawsuit is holding the Canada Pension Plan Investment Board to account for fossil fuel investments, say campaigners Cheryl Randall and Patrick DeRochie of @shiftaction.bsky.social.

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Roundup: NGFS releases new green monetary policy toolkit As evidence emerges that the European Central Bank (ECB) has substantially underestimated the cost of physical climate risks, a new report from the

#GreenCentralBanking roundup:

✅ NGFS unpacks policy options for greening monetary policy
🇪🇺 ECB finds physical climate risks significantly underestimated
📋 African nations move faster than peers in adopting ISSB standards

And more 👇

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China’s ISSB-aligned reporting rules ‘go beyond many global standards’, say experts Experts say China’s new disclosure rules, which use double materiality, will simplify their compliance with the EU’s sustainability regulations.

China has finalised its first national climate disclosure standard, which now ties corporate reporting to national targets.

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Global instability set to accelerate energy transition and mineral competition Geopolitical clashes over Greenland and Venezuela mean energy security becomes a bigger driver for renewables than economics or climate.

Geopolitical tensions around crises such as Greenland and Venezuela should bolster the case for the transition away from fossil fuels, even as the shift creates new rivalries around critical minerals needed for renewable energy technologies, experts say.

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Report: most US public pensions fail to invest in climate solutions Trump climate hostility is no excuse for pensions to evade duty to protect retirement savings from risks, says environmental group.

🇺🇸 Most major US public pensions are failing to make investments that help reduce emissions and protect their members’ retirement savings from rising climate risks, according to a report by the @sierraclub.org.

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East and Southeast Asia Green Central Banking contracted support Shifting power from big banks to people. We collaborate with policymakers, the public and economists around the world so we can redesign our economic system for a better world and a healthy planet.

Our partners at @positivemoneyuk.bsky.social are looking for consultants to support the next Asia edition of the Green Central Banking Scorecard.

Details & how to apply:
positivemoney.org/vacancy/east...

Central banks should create a new carbon reward asset to speed transition Carbon reward could mobilise $3tn a year for renewables shift, according to its creator Delton Chen.

Central banks should create a new carbon reward asset to help fund the net zero transition, according to a new proposal from Global Carbon Reward (GCR).

Emma Thomasson spoke to Delton Chen, GCR executive director and founder, to find out more.

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Can local currency financing help solve the climate and debt crisis? Join us for a discussion on the challenges and opportunities of expanding local currency financing to tackle the climate and debt crisis

Our partners at @positivemoneyuk.bsky.social are hosting a webinar on whether local currency financing can help tackle the climate and debt crisis.

🗓 22 Jan | 5:30–6:45pm GMT

Register 👇

www.eventbrite.co.uk/e/can-local-...

Global warming is accelerating as air pollution ‘sunshade’ recedes, says report Actuaries and scientists predict warming to reach 2°C before 2050 as air quility improves, increasing risk of tipping points.

The pace of global warming has been underestimated due to a loss of the hidden sunshade effect created by air pollution, warns a new report from the UK’s Institute and Faculty of Actuaries and @exeter.ac.uk.

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The evolving view of climate-related financial risks in the US financial sector Tension is growing in the US financial system between increasing climate impacts and declining focus on addressing those impacts, says former Fed governor Kevin Stiroh.

Even as climate change drives increasing physical and transition risks for the financial sector and economy, the sector has pulled back on addressing climate-related financial risks, says Kevin Stiroh.

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China shows monetary independence may hinder net zero progress Government direction has spurred PBoC to adopt green monetary policy measures, argue economists Mathias Larsen and James Jackson.

Central banks around the world now acknowledge climate risk, but only one major central bank has translated this concern into systematic, large-scale monetary intervention in support of decarbonisation: the People’s Bank of China.

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Weak consensus on ‘transition’ activities in Asian taxonomies expose investors to risks Indonesia, Malaysia, Japan and China are 'effectively tolerating transition-washing' in power generation, based on a study by Energy Shift Institute.

Countries in Asia have introduced transition criteria in their taxonomies, but divergence in approaches risks impeding cross-border financing towards the decarbonisation of high-emitting sectors, according to Energy Shift Institute.

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Roundup: Bank of England strengthens its climate risk expectations Bank of England tightens climate expectations, EU launches carbon border tax, Hong Kong considers nature taxonomy, and BIS flags risk of water scarcity.

#GreenCentralBanking roundup:

🇬🇧 BoE strengthens climate risk expectations for financial firms
🇪🇺 EU competition chief defends green regulation against ‘race to the bottom’
🚰 Warnings that water scarcity poses macroeconomic risks

And more 👇

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As we look back on 2025, we’ve selected six charts that show what happened in the world of climate finance.

Here’s one of the six charts - click through to read the article for the other 5.

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Turning promises into progress: the rise of transition plans in Indonesia Indonesia is forging ahead with transition plans but financial companies are still in the early stages of developing theirs, say Valentina Bellesi and Yuki Yasarani.

Valentina Bellesi - policy analyst at the OECD - and Yuki Yasarani at Indonesia Financial Services Authority chart the rise of transition plans in Indonesia.

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EU central banks need data. The omnibus won’t make it easy Only four EU central banks are taking additional measures, despite looming data gap from sustainability omnibus revisions.

Brussels wants to simplify climate reporting requirements for companies. But EU banking regulations require financial institutions to understand and report on their climate risk, says @moriahcosta.bsky.social.

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Global GDP could fall by 50% from climate risk shocks, report finds The latest report from the Institute and Faculty of Actuaries urges regulators and politicians to take more action to avoid ‘planetary insolvency’.

Another look back at the #TopStories of #2025 from @greencb.bsky.social.

In February, an IFoA report warned #ClimateRisk shocks could slash global GDP by up to 50% by 2090 — far beyond previous estimates & a wake-up call on the cost of inaction.

Read more 👇

Poorer Asean countries need support to green financial policies, report shows Countries such as Cambodia and Laos are aware of climate risks but lack capacity to act and need support from richer states.

#TopStories of #2025 from @greencb.bsky.social.

In September, @positivemoneyuk.bsky.social’s East & Southeast Asia Green Central Banking Scorecard found that poorer ASEAN countries want to adopt green policies but need support from richer neighbours.

Read more 👇

How Indonesia's central bank is leading its green transition Despite being one of the largest CO2 emitters in south-east Asia, Indonesia’s central bank has a clear green mandate from its government to curb bank emissions.

Look back at the #TopStories of #2025 from @greencb.bsky.social.

In September, Bank Indonesia stood out in the ASEAN region for leading on the #GreenTransition with a mandate to develop #GreenFinance & new steps to steer banks toward #ClimateAction.

Read more 👇

Will Mark Carney the PM be as climate friendly as Mark Carney the banker? As a central banker, Mark Carney led the push on understanding the risks climate change poses to economies. But will he have the same focus as Canada’s new prime minister?

#TopStories of #2025 from @greencb.bsky.social.

In May, former central banker @mark-carney.bsky.social became Canada’s prime minister — prompting debate over whether his #ClimateFinance background will translate into stronger national #ClimatePolicy.

Read more 👇

US states forge ahead with climate rules even as Trump rolls back policies New York state's proposed climate disclosure rules show some states are moving ahead on green policies despite US government pushback.

#TopStories of #2025 from @greencb.bsky.social.

In March, 🇺🇸 US states like New York & California pushed forward with climate disclosure rules — resisting the Trump administration’s rollback of federal green policies.

Read more 👇

Major Dutch pension fund withdraws from BlackRock, L&G in sustainability push PFZW withdraws billions from leading asset managers as pension funds come under mounting pressure to take account of climate risks.

Looking back at the #TopStories of #2025 from @greencb.bsky.social.

In September, @pfzwpensioen.bsky.social — the Dutch pension fund — ended mandates with BlackRock, Legal & General & AQR as it ramped up efforts to align its portfolio with new sustainability goals.

EU politicians reject sustainability omnibus proposals in surprise secret vote EU politicians voted against the bloc’s sustainability omnibus, opening it up to negotiation and amendments before another vote in November.

#TopStories of #2025 from @greencb.bsky.social.

In October, 🇪🇺 @Europarl_EN rejected the EU’s sustainability omnibus in a secret vote — but later approved a weakened version, watering down #ESG and due diligence rules.

Read more 👇

China takes top place in new Asia green central banking scorecard First assessment of east and south-east Asian institutions shows that even bigger economies still need to do more given risks of climate breakdown.

#TopStories of #2025 from @greencb.bsky.social.

In September, 🇨🇳 China took top spot in @positivemoneyuk.bsky.social’s first East and Southeast Asia Green Central Banking Scorecard.

Read more 👇

SEC moves to freeze its climate disclosure rule Acting chair Mark Uyeda says the SEC will not defend its climate disclosure rule in court even as US companies need to report in other jurisdictions.

#TopStories of #2025 from @greencb.bsky.social.

Also in February, the US SEC moved to freeze its #ClimateDisclosure rule requiring companies to report climate-related risks — part of a broader anti-ESG shift under the Trump administration.

Read more 👇

7️⃣ The NGFS vowed to continue helping the financial sector manage #ClimateRisks.

Whether it’s the #CleanEnergy boom, new climate leaders emerging, or the global south forging ahead on its own terms, there is much from the past year to celebrate.