The MENA region is highly vulnerable to climate change and faces severe environmental, political and economic challenges. To combat these challenges, carbon neutrality serves as a key mitigation strategy. This study examines the factors influencing central banks in the MENA region to adopt a pledge for carbon neutrality.
This study analyzes 20 MENA central banks, comparing 11 NGFS members with 9 non-members. A comparative analysis using FsQCA software version 3.0 is employed to identify the sufficient and necessary conditions contributing to the outcome of a carbon neutrality pledge.
The study develops a model for MENA central banks’ carbon neutrality pledges, identifying political factors and low demographics as core conditions. Environmental, economic, negated environmental and negated economic factors serve as peripheral conditions. No single factor was identified as a necessary condition.
The study may help shape policies by guiding policymakers in promoting carbon neutrality among central banks in the MENA region, addressing barriers, and enhancing sustainable financial strategies. This study identifies three distinct pathways to carbon neutrality pledges, offering a flexible framework for policymakers to design context-specific strategies based on national conditions.
This study uniquely examines the factors driving MENA central banks’ carbon neutrality pledges that have not been previously studied. It develops a model that distinguishes core and peripheral conditions, offering fresh insights for policymakers and financial institutions.
