This master’s thesis explores how credit policy can support the green transition, with a focus on the European Central Bank (ECB). It begins with the observation that the ECB’s current approach to climate change has failed to meet the European Union’s decarbonization targets. Based on the green macro-financial regimes typology developed by Gabor and Braun (2025), the thesis presents the ECB as an institutional embodiment of the "derisking state" regime. It argues that the ECB’s commitment to “market neutrality” – which is prevalent among central banks in the Global North – is not viable in the context of the climate crisis and may contribute to future financial instability. The central argument is that the ECB should take a more active role in directing credit toward green investments. To support this argument, the thesis outlines a set of credit policy tools and presents two case studies: the post-war Banque de France Credit Council and the People’s Bank of China’s (PBoC) green credit policy. These examples show how the incorporation of credit guidance in central bank's operational framework has been used in different historical and political contexts to achieve public policy goals. The thesis concludes that proactive credit policies are essential for meeting the Paris Agreement targets and decarbonizing the economy.