Abstract

The importance of energy finance in sustainable development and, in particular, within the sustainable finance strand has visibly increased in recent years. In this review article, we focus on the role of central banks in this area. We draw on official documents from regulatory and supervisory institutions, central banks, think-tanks, non-governmental organisations and academic publications. First, we discuss the definitions of energy finance, Environmental, Social and Governance (ESG) risks and their transmission channels. Then we describe the mandates of central banks to act in this field. Finally, we discuss key aspects of ESG monetary and macroprudential policies as well as central banks' communication in this regard. We conclude by proposing topics for further research in this area.

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