IMF – Central Banks and Climate Change: Key Legal Issues, Sep 2024

This report addresses the legal considerations central banks face in tackling climate change under their existing mandates. The IMF explores how central banks can incorporate climate change policies within their current legal frameworks while maintaining their core mandates of price and financial stability. It examines the challenges of engaging in climate-related actions without overstepping their authority or compromising independence. The report discusses legal frameworks worldwide, comparing strategies adopted by central banks to integrate climate considerations into monetary and financial policies. This analysis provides a foundation for understanding the balance required for effective climate policies without breaching the traditional boundaries of central banking.