Article | Aligning sovereign bond markets with the net zero transition: the role of central banks
The CCPI data is requested and used for research and science purposes. The CCPI was used as a source in this paper.
In summary, this report argues central banks can contribute to the net zero alignment of sovereign bond markets in three ways:
- First, as one of the largest owners of sovereign bonds globally, central banks can reallocate part of their domestic and foreign sovereign bond portfolios to better align them with the transition to net zero and manage their climate risk exposure.
- Second, central banks can use their role as standard setters and financial supervisors to contribute to the alignment of sovereign bond markets, such as by supporting the development of assessment and disclosure frameworks for sovereigns and highlighting examples of best practice.
- Finally, central banks can engage publicly on net zero national and international policies and objectives, for example by calling on governments and public agencies to deliver on their net zero pledges and providing them with information and technical assistance on climate-related economic strategies.