Original scientific paper
https://doi.org/10.46672/ms.24.1-2.2
The role of central banks in the process of climate transition
Biljana Balog
Luka Brkić
Abstract
Climate changes represent one of the biggest challenges that today’s society faces. Climate transition is considered a global challenge that requires urgent actions to reduce greenhouse gas emissions and adapt society to environmental changes. Central banks, as key institutions of monetary policy, have the potential and responsibility to contribute to climate transition. This paper is based on research of the role of central banks in the climate transition towards carbon neutrality. The main functions of central banks, maintenance of price stability and supervision of the financial system, are faced with new challenges. In a world where every sector faces the need for a transition to a more sustainable economy, central banks are becoming increasingly aware and active in their role during this transition. The aim of this paper is to contribute to a better understanding of the role of central
banks in the context of the climate transition towards carbon neutrality. Consequently, relevant research queries were raised during the preparation of this paper: 1. should central banks deal with the topic of climate change and why? 2. what are the mechanisms of central banks that can be used to encourage sustainable development? 3. how do central banks cooperate with each other and with other relevant institutions? 4. do climate changes affect macroeconomic trends?
Keywords
Hrčak ID:
323400
URI
Publication date:
20.12.2024.
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