The Green Central Banking Scorecard: 2024 Edition

The Green Central Banking Scorecard ranks G20 countries on the progress of their central banks and supervisory institutions towards incorporating environmental considerations in their operations across four categories: Research and Advocacy, Monetary Policy, Financial Policy, and Leading by Example. The scoring assessment is based on literature reviews, expert consultation, and bilateral interactions with the ranked institutions. This edition of the Green Central Banking Scorecard also utilises an updated methodology to recalibrate the scoring process to reflect new developments in the green central banking field since the 2022 edition.

This report assesses the progress made by G20 central banks and supervisors towards the recommendations made in the previous edition, within the wider context of countries’ historical environmental impact, as well as in relation to global imbalances in monetary and financial power. The urgent need for institutions to implement high impact green policies is emphasised, especially those in countries bearing the largest historical responsibility for the climate crisis.

Progressing, stalling, or falling behind?

The European Union member countries—France, Germany, and Italy—have taken the top three positions on the scorecard, with the European Union taking the fourth position. France, leader of the 2022 scorecard, has remained in first place with a slightly higher score than Germany and Italy, which have placed in joint second position. All three EU member countries have been awarded a B+ grade. 

Brazil has achieved a B- grade in 2024, improving from joint 6th position in 2022 to 5th position in 2024. While the Banco Central do Brasil has yet to fully implement any high impact policies, the institution has implemented a wide range of medium impact actions and formally committed to a high impact monetary policy.

China has also made progress, achieving a C+ grade while retaining the same ranking in 6th position. The People’s Bank of China has facilitated large-scale green investment through the Carbon Emission Reduction Facility. However, large-scale loans to coal enabled by the PBoC remain outstanding, which has held back China’s overall score. 

The UK is still graded C, as it was in 2022, with a slightly lower overall score. It has not committed to any high impact monetary policies, and has only implemented a few medium impact policies, with the most notable highlight being the greening of the Bank of England’s Corporate Bond Purchase Scheme. 

The US, Turkey, Argentina and Saudi Arabia are the four lowest ranking countries in the 2024 scorecard rankings. The central banks and supervisors of these countries have taken minimal to no action to green their operations, and remain at the starting line, falling far behind the other G20 members due to a lack of progress across all categories.

Recommendations for central banks

Research and advocacy: Act on environmental risks beyond climate, adopt and advocate for a precautionary approach to addressing climate and ecological crisis, adopt a double materiality framework, and recognise historical responsibility for climate change

Monetary Policy: Recognise that achieving inflation targets requires taking action against ‘climateflation’, create green lending schemes, strengthen green asset purchase programmes and collateral frameworks, and coordinate with governments to increase fiscal space for green public investment.

Financial Policy: Increase risk weighting for fossil fuel investments, strengthen limits on dirty lending, and require all financial institutions to disclose evidence-based transition plans.

Leading by example: Support the development of unsustainable taxonomies, align all non-monetary portfolios with the Paris Agreement and environmental goals, and empower citizens and civil society to understand and engage with central banking.

PDF download:

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(Free, PDF, 46 pages)

Contact:

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