The “Green Central Bank: Evaluation Report of G20 Central Banks and Financial Supervisors” written by Positive Money was approved and released by 24 research institutions and NGOs. The report assessed the progress made by central banks in the G20 countries in research and advocacy, monetary policy, financial policy, and sustainable development by example, and analyzed what actions policy makers can take to address environmental issues.
Prof. Wang Yao was invited to deliver a speech during official report launch event on March 31, 2021. Wang Yao shared her feelings about the report. Prof Wang noted that historically, banks had not included climate risks in their policies, and that might be why there is still relatively little progress on including environmental factors in the central banking policies. Central banks should prepare to implement green aspects in their regulations and prioritize the inclusion of green factors into policies that are already in place.
However, to build a green financial system, entirely new policies will be needed, and they should be introduced starting gradually, for example by implementing pilot programs. Many new policies, such as climate stress testing, will require many regulatory efforts and should be introduced gradually, and for this, improving capacity will be essential.
Additionally, Prof. Wang pointed out that applying green finance principles to support emission reduction will be important for PBoC during the next FYP. She believes that transition finance will also be one of the key leverages for central banks in coal-reliant countries such as China.