Central Banking and Sustainability

Kern Alexander is Professor of International and European Financial Law at the University of Zurich and Director of Studies at Queens' College, University of Cambridge, and Senior Research Fellow at the Institute of Advanced Legal Studies, University of London. Seraina Grünewald is Professor of International Economic Law and Finance Law at the University of St. Gallen and a part-time professor the European University Institute, Florence.

'By unpacking the nature of the diverse legal and institutional settings for central bank action internationally, the range of tools at their disposal, and the wider governance frameworks that frame their actions, this book has brought materially greater transparency to, and significantly advances understanding of, the nuances and complexities of central bank engagement with sustainability.' Niamh Moloney, Law School, London School of Economics and Political Science

• Introduction; 1. What role for central banks in fostering sustainability? Kern Alexander and Seraina Grünewald; Part I. Sustainability as a New Objective of Central Banks – Interpreting Mandates: 2. The green mandate of the Bank of England Kern Alexander and Paul G. Fisher; 3. Environmental and social sustainability in the mandate of the European Central Bank David Ramos Muñoz and Elia Cerrato García; 4. Environmental and social sustainability in the mandate of the Federal Reserve Kern Alexander; 5. Reshaping mandates in emerging markets and developing countries: what role for central banks in countries strongly affected by climate change? Elsie Addo Awadzi; 6. Is net-zero central banking possible in the Caribbean? Nicole Chapman and Dorian M. Noel; Part II. Understanding and Managing Sustainability Risks: 7. Sustainable central bank balance sheets and operations Paul G. Fisher and Diarmuid Murphy; 8. Climate-related risks, systemic risks, and macroprudential regulation Pierre Monnin; 9. Central bank supervisory role: micro-prudential supervision and regulation of ESG risks Agnieszka Smoleńska; 10. Operationalising the climate change action plan of the European Central Bank – legal considerations Sarah Jane Hlásková Murphy; 11. Designing stress tests for sustainability risks Bernadette Chmelar, Christoffer Kok and Isabel von Köppen-Mertes; 12. Central bank digital currency and financial inclusion Marco Dell'Erba; Part III. In Search of Guidance: Market Neutrality, Policy Coordination and Democratic Legitimacy: 13. Capital allocation by monetary authorities: law, theory and practice Will Bateman; 14. The law and politics of independent policy coordination: fiscal and sustainability considerations in the European Central Bank's monetary policy Nik de Boer, Seraina Grünewald and Jens van 't Klooster; 15. On the democratic legitimation of climate change mitigation activities of independent central banks Fabian Amtenbrink.