Green Central Banking Scorecard Methodology Review

The scorecard enables policymakers, researchers, and civil society organisations to track the progress of central banks towards addressing climate and nature-related risks and supporting the transition to a low-carbon economy. [...] A more granular approach to the scoring methodology may be desirable to address this issue, but would also have drawbacks, such as reducing the direct comparability of the third edition with previous editions and increasing the complexity of the scoring process. [...] While a consensus exists among many stakeholders regarding the importance of the qualitative aspect as the scorecard’s backbone, there is a call for the forthcoming edition to incorporate more quantitative data to substantiate the scoring. [...] The project has proven to be a vital tool in advancing the green central banking narrative internationally, and has picked up momentum in the last year due to its well-thought indicators and appropriate weighting of the different categories that encapsulate this field. [...] The third edition of the scorecard will assess the feedback from stakeholders and implement viable changes to the methodology based on these recommendations.