London: Grantham Research Institute on Climate Change and the Environment (LSE) / Centre for Sustainable Finance (SOAS, University of London)
Reaching net-zero greenhouse gas emissions is a critical goal of climate policy. Across the world, growing numbers of governments are introducing targets and plans to achieve net-zero around the middle of this century. Alongside this, leading banks and investors are committing to align their portfolios with net-zero by 2050. As guardians of the financial system, central banks and supervisors also need to introduce explicit strategies to support the transition to net-zero as the next stage in confronting the risks of climate change. This report is a first attempt to examine the role that central banks and financial supervisors could play in supporting the transition to net-zero.