This document discusses the role central banks and commercial banks can play in promoting green investment and transitioning to a greener economy. It outlines how banks create money through lending and how central banks influence monetary policy. It then presents three policy instruments central banks could use: 1) macroprudential regulation, 2) influencing green credit creation through tools like refinancing and quotas, and 3) green quantitative easing where central banks directly finance green projects. The document provides examples of countries using these approaches and discusses both the opportunities and limitations central banks face in promoting green transitions.