A scientific, sustainable way to finance climate goals of countries

A green taxonomy is the foundation upon which a financial system aligns with a country's climate goals

Globally, the jury is still out on whether central banks should focus on the narrow mandate of price stability or broaden their role to tackle climate change as well. One view is that autonomy, a cornerstone of central banking, is best retained through a narrow mandate. Hence, they must desist from being climate policymakers.
 

Thomas Jordan, the president of the Swiss National Bank, said at Davos 2024 that central banks do not have efficient and effective instruments to tackle climate change. A similar sentiment was echoed earlier by US Federal Reserve Chairman Jerome Powell, who said that central banks must