Climate change and the net zero – or green – transition are already impacting our economies and thus have implications for monetary policy. Governments across the world have been responding to the significant threat posed by climate change by setting targets and introducing policies to reduce greenhouse gas (GHG) emissions and deliver the transition to net zero. These policies aim to facilitate major structural changes within economies by changing consumption patterns and production activities towards low-carbon ones, and by scaling up investments in low-carbon sectors. As part of this transition, large-scale investments in renewable energy and other green technologies, higher rates of innovation in these technologies and changes in preferences will be required. […]