Presentation short abstract

This paper explores on the one hand central banks as potential key actors in promoting socio-ecological transformation towards climate justice, and on the other hand how central banks can delay and/or obstruct climate action.

Presentation long abstract

Central banks have emerged as key actors of the financialised capitalist economy. Through their monetary policies they exercise significant power in shaping economic and financial geographies. Given this power, central banks can potentially play a pivotal role in transforming our economies in the age of climate disruption. By radically reshaping financial flows (and financial chains) they can usher a much-needed transformation towards greener, decarbonised, fossil fuel-free economies, fairer and healthier societies and lead the way in promoting climate justice around the world. However, central banks can also act to block transformative climate action and use their power to maintain the environmentally harmful and socially destructive status quo.

This paper first contrasts these two roles – exploring on the one hand central banks as potential key actors in promoting socio-ecological transformation towards climate justice, and on the other hand how central banks can delay and/or obstruct climate action. The paper then examines how the actions and monetary policies of leading central banks map onto these two contrasting roles. Contributing to the growing debate on the ways central banks should be responding to climate disruptions, this paper also expands the emerging literature on climate obstruction in banking and finance.