Malaysia, Singapore, Indonesia, and the Philippines emerged as clear leaders for green central banking, according to a new report from think tank Positive Money.
According to the East and Southeast Asia Green Central Banking Scorecard, which compares the progress of 13 countries’ central banks and financial supervisors in integrating environmental considerations into their policies, the overall scores of Malaysia, Singapore, and the Philippines come in a similar range.
The report says most countries perform better on financial regulation policy than monetary policy, but none have adopted any policies that they consider ‘high impact’ measures: policies that actively divert finance away from the most ecologically damaging economic activities (e.g. fossil fuel production), across assets and sectors.
Further, a common factor linking several of the highest-scoring central banks was strong coordination with their respective national governments, which the report claims is crucial for maximising the success of green central banking policies in contributing towards the wider green transition.
