Studi Komparatif Bank Sentral Hijau

The role of the central bank has evolved since the first central bank was established. The modern central bank is largely concerned with maintaining monetary and financial stability through various monetary and financial instruments, acting independently from the government in the nation’s best interest. Climate change poses a great challenge to the central bank’s mandate as it could potentially disrupt price stability and monetary and financial policy transmission. With how severe the impact of climate change could be to the economy, the central bank could participate in mitigating and adapting the impacts of climate change through green central banking. Green central banking is a central bank that operates with regard to environmental risks, such as climate change, that will impact the stability and development of the financial and macroeconomic sectors. The study compares how green central banking is implemented in chosen central banks: China, United States, Europe, and Indonesia. From the comparison, it is found that China currently has the greenest central bank. Instruments that could be used include incentive for banks to increase green lending, such as lower reserve requirement and higher interest rate for greener banks. Credit allocation for green projects could also be used. The approach in implementation should be adjusted to a country’s political and governance system.