University of Amsterdam Details Findings in Climate Change (Why the Fed and Ecb Parted Ways On Climate Change: the Politics of Divergence In the Global Central Banking Community): Climate Change

2026 JAN 26 (NewsRx) -- By a News Reporter-Staff News Editor at Climate Change Daily News -- Researchers detail new data in Climate Change. According to news originating from Amsterdam, Netherlands, by NewsRx correspondents, research stated, “Central banks form a global policy community with a historically high degree of convergence around the norms of central bank independence. However, in recent years, climate change has emerged as a topic of clear-cut divergence - most strikingly between the historically similar European Central Bank (ECB) and US Federal Reserve (Fed).”

Financial support for this research came from Netherlands Organization for Scientific Research (NWO).

Our news journalists obtained a quote from the research from the University of Amsterdam, “We develop a theoretical framework that allows us to explore not only factors pushing towards central bank convergence, but also divergence. We show that in an initial stage of emergence, a largely autonomous process of internal deliberation led the ECB to endorse new climate-related norms, where this dynamic was absent in the United States. In a second phase of cascade, marked by the founding of the Network for Greening the Financial System and a growing body of research on climate impacts and central bank objectives, climate-related norms began to exert limited pressure towards convergence.”

According to the news editors, the research concluded: “However, the Fed’s perceptions of political risk constrained its adoption of climate-related policies, and eventually led to a retreat from climate following the re-election of President Donald Trump at the end of 2024.”

This research has been peer-reviewed.

For more information on this research see: Why the Fed and Ecb Parted Ways On Climate Change: the Politics of Divergence In the Global Central Banking Community. The British Journal of Politics and International Relations, 2025. The British Journal of Politics and International Relations can be contacted at: Sage Publications Inc, 2455 Teller Rd, Thousand Oaks, CA 91320, USA.

The news correspondents report that additional information may be obtained from Jens van ‘t Klooster, University of Amsterdam, Dept. of Political Sciences, Amsterdam, Netherlands. Additional authors for this research include Monica DiLeo and Glenn D. Rudebusch.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1177/13691481251396874. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)