Central bank actions in response to climate change

Climate change represents a growing threat to global financial and economic stability. This paper presents a literature review on the strategies and measures adopted by central banks to mitigate climate-related financial risks and to facilitate the transition toward a sustainable economy. The review highlights that central banks are progressively integrating environmental risks into their financial supervision frameworks, conducting climate stress tests, and implementing strategies aimed at directing credit flows toward sustainable sectors. Nevertheless, an ongoing debate persists regarding the principle of central bank neutrality in the face of climate-related interventions.