Climate change and the ECB
Through our strategy review, we will determine where and how the issue of climate change and the fight against climate change can actually have an impact on our policies.
We at the ECB are exploring how we can be effective in the fight against climate change. We are working to identify the risks that climate change can present to the economy and the financial system.
Climate change can affect the economy through extreme weather events and uncertainties related to the transition to a low-carbon economy.
The ECB takes actions in four main areas of competence
Economic Analysis
ECB staff ensure that climate change is taken into account in the ECB’s macroeconomic models, forecasting methods, and risk assessments.
MoreBanking supervision
Supervisors engage with banks to raise awareness of risks emerging from climate change. The aim is to ensure that banks are able to manage these risks properly.
MoreMonetary policy and investment portfolios
As part of the ECB’s asset purchase programmes we have invested in green bonds, taking into account the need to avoid market distortions.
MoreFinancial stability
Financial stability experts measure and assess the risks posed to the financial system by climate change. Their findings are communicated to the public, to market participants and to policy makers.
MoreHow does climate change affect financial stability? Why isn’t the ECB buying more green bonds? How can banks better prepare for climate-related risks? Our host Michael Steen discusses these questions with expert guests Fatima Pires, Madelaine Roos and Patrick Amis.
More (available in English only)LOOKING FOR THE LATEST ON CLIMATE CHANGE?
FIND IT BELOW
The ECB is a member of the following groups
The Eurosystem’s response to the European Commission’s Renewed Sustainable Finance Strategy
The ECB and the national central banks of the countries that have adopted the euro stand ready to support the European Commission’s work to develop a sustainable finance strategy and improve the disclosure of non-financial information. We have identified five key priorities in response to the Commission’s public consultations.
Read our responseThe Network for Greening the Financial System (NGFS)
The ECB is a member of the NGFS: a group of central banks and financial supervisors from five continents who look for ways to support a smooth transition towards a low-carbon economy. In 2020 the ECB joined the network’s executive body, the Steering Committee.
Visit the NGFS website