The Crossover between Climate Politics and Central Banking

How Green Central Banking Emerged in the US, the EU, and the UK

Bibliographic Data

ID2317543
AuthorsNicolas Jabko (0000-0001-8028-1946, Johns Hopkins University), Nils Kupzok (0000-0003-3024-6864, Johns Hopkins University School of Advanced International Studies)
Year2024
Volume52
Issue4
Pages662-690
Publication date2024-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueLatin American Politics and Society (JOURNAL)
Journal identifiersISSN: 1531-426X • E-ISSN: 1548-2456
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/00323292241246357
OpenAlexW4396556783
LanguageEN
Citations received5

Climate change has emerged on the agenda of central bankers. We argue that the rise of green central banking resulted from a crossover between climate politics after the 2015 Paris Climate Agreement and central banking after the 2008 financial crisis. Actors in these unconnected fields constructed and exploited this new linkage to their advantage. In the wake of the Paris Agreement, climate advocates promoted green central banking as part of a broader push for climate action beyond typical climate policy. Central bankers, in turn, endorsed green central banking to shore up political support. After their post-2008 unconventional monetary policies had alienated many right-wing backers, central bankers needed to make their policies more broadly appealing. This logic prevailed to varying degrees in the European Union and the United Kingdom, thanks to a new openness to climate action. In the United States, however, political polarization around the climate issue set clear limits to the crossover

Banking Union · Economic policy · Economics · Economy · European union · Financial crisis · Macroeconomics · Openness to experience · Political economy · Political science · Politics · Climate Change Policy and Economics · Law · Sustainability and Climate Change Governance · Sustainable Finance and Green Bonds