Despite a central bank’s natural involvement in macro-prudential supervision there still exists a need for close cooperation with micro-prudential supervisors since effective macrosupervision is effected through micro-supervisor’s actions.
Only when carbon emissions are reasonably priced, or in other words carbon emitters need to pay carbon taxes or purchase carbon emission quota, with an aim to make carbon emitters bear the costs and enable all microeconomic entities to internalize the external costs of carbon emissions, can enterprises and households be really motivated to change their behavior.