Green Banking Regulation: Setting Out a Framework

Abstract

This policy brief discusses the case for central banks and other financial authorities to devise green banking frameworks and regulation and outlines the sustainable banking frameworks that are currently being developed in Bangladesh, the Dominican Republic and Pakistan as proto-types within the framework of the Practitioners’ Dialogue on Climate Investments (PDCI). The paper describes the challenges of implementing green and sustainable financial market regulation and provides policy recommendations for regulatory authorities that consider introducing such regulations.

Keywords: green financial regulation, green finance, Central Bank policies, developing countries

JEL Classification: E58, F30, O11