Supporting the Just Transition: a Roadmap for Central Banks and Financial Supervisors

This policy brief was published by INSPIRE (The International Network for Sustainable Financial Policy Insights, Research and Exchanges), as part of the Sustainable Central Banking Toolbox paper series.

Moving the economy to a sustainable model will have profound impacts, both positive and negative, on sectors and regions around the world.

Managed well, the net zero transition could lead to more and better jobs, and reduced risks from climate shocks. Managed poorly, however, it could result in stranded assets, stranded workers and communities – even stranded countries. In response, government policymakers have stressed the need for a ‘just transition’ that leaves no one behind.

This paper sets out why it is important for central banks and supervisors to actively support the just transition, suggests a three-step roadmap for achieving this goal, and explores policy options for aligning monetary policy operations and financial regulation with the just transition.

Read the full policy brief Supporting the Just Transition: a Roadmap for Central Banks and Financial Supervisors.