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Climate and nature plan 2024-2025 at a glance 

We have taken stock of the progress made since our climate agenda 2022, and decided to expand our work on climate change. 

In 2024 and 2025 we will focus on three areas:

  1. the implications of the green transition,
  2. the physical impact of climate change, and
  3. the risk that nature loss and degradation pose to the economy.

Our work on climate and nature

Why is it relevant for the ECB?

Higher temperatures, storms or droughts – but also deforestation, soil erosion or pollinator losses – can push up prices and ultimately inflation. Price and financial stability can only be preserved if climate and nature are stable.

Why climate change matters

What are we doing about it?

In line with our three strategic objectives, our work on climate change is entering a new phase guided by our climate and nature plan 2024-2025. By building on lessons learnt, the plan outlines where we are broadening our efforts and identifies three focus areas for our activities.

Deep dive into our climate and nature plan 2024-2025

Where are we broadening our efforts?

Building on our action plan 2021, climate agenda 2022 and supervisory priorities for 2024-2026, we are expanding our work on:

Macroeconomic analysis and monetary policy

Improving analytical tools to better understand the macroeconomic impact of climate change and the transition and enhancing management of climate change risks on the Eurosystem balance sheet.

Banking supervision and financial stability

Including climate and environmental risks as a supervisory priority for 2024-2026 and further developing our framework for climate-related risks to financial stability.

Climate-related data

Continuing to work towards obtaining more and better data on climate risks and nature degradation.

Payments, banknotes and market infrastructure

Continuing reducing the environmental footprint of Eurosystem banknotes and expanding environmental footprint considerations to other means of payments and market infrastructures.

Environmental performance of our own operations and portfolios

Striving to reduce the environmental footprint of our own operations and non-monetary policy portfolios, and continuing our commitment to disclosing progress on our climate-related work.

What areas are we focusing on in 2024 and 2025?

1. Navigating the transition

Greening the economy will contribute to price and financial stability. Delaying the transition will increase its costs. We continue to explore what the transition means for the economy and financial system, and to consider how we can support it within our mandate.

2. Assessing the physical impact of climate change

Extreme weather affects the economy and drives up prices. Understanding the impact of a changing climate is important for our work as a central bank and banking supervisor. We also share our research to help all economic actors make informed decisions and adapt.

3. Exploring nature-related risks

Our economy relies on nature and cannot exist without nature, which is why nature degradation poses financial risks. We therefore need to assess the implications of nature degradation – and its interplay with climate – in pursuit of our mandate.

See also

Look at our work so far:

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