Sustainability matters increasingly affect and concern central banks around the globe, while the perception of what they are legally empowered to do may differ depending on the jurisdiction at hand. This volume systematically assesses the role of central banks in matters of sustainability from different perspectives in academia and central banking practice – some more favourable of a proactive engagement of central banks in sustainability policies, others more critical and vigilant of legal and legitimacy boundaries of such engagement. The methodological approaches the authors deploy include legal-doctrinal analysis, qualitative empirical analysis, and economic theory. The essays together provide a balanced assessment of the role central banks can and should play in sustainability matters, addressing legal aspects, legitimacy concerns, and concerns of interinstitutional balance as well as economic and operational considerations. The book covers both developed and developing economies, where central banks are already facing the dire consequences of the warming climate.

‘By unpacking the nature of the diverse legal and institutional settings for central bank action internationally, the range of tools at their disposal, and the wider governance frameworks that frame their actions, this book has brought materially greater transparency to, and significantly advances understanding of, the nuances and complexities of central bank engagement with sustainability.’

Niamh Moloney - Law School, London School of Economics and Political Science