Greening the Financial Sector Through Provision Policies: The Role of Central Banks

As climate change becomes more serious, the impacts on natural, economic and social environments are becoming more real. For future generations, the extent of this damage and the capacity of the world’s people to survive and prosper will depend on choices that are made today.

The overall objective of provision policies is to help mobilize financial resources to build resilience, particularly for women, to ease climate-related post-disaster recovery, support the development of green projects and move the sector toward a less carbon-intensive economy that is more stable, secure and inclusive. This special report examines how central banks and other financial regulatory institutions are involved in efforts to green the financial system through provision policies. Highlighting real-world experience and know-how in the AFI network, this report provides a comprehensive review of approaches AFI members have taken to roll out a sustainable green finance agenda.

The Inclusive Green Finance workstream is part of the International Climate Initiative (IKI), supported by the German Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMU), based on a decision by the German Bundestag.