The European Central Bank (ECB) has intensified its climate initiatives, focusing on the green transition, climate risks, and those related to nature. The growing impact of the climate crisis on the economy and financial markets requires increased commitment. The ECB reaffirms its commitment to climate action and plans to regularly review these efforts. Its future work, in 2024 and 2025, will focus on three main areas of interest: the green transition, the physical impact of climate change, and nature-related risks for the economy and financial markets.
ECB President Christine Lagarde emphasizes the importance of understanding and addressing this economic and financial transformation. The ECB will take concrete measures, including intensifying activities on the green transition and evaluating changes to its monetary policy tools. It will also analyze the impact of extreme weather events on inflation and the financial sector, as well as the link between biodiversity loss and climate change.
The ECB will launch its eighth environmental management program to reduce carbon emissions by 2030 and integrate environmental considerations into the digital euro project. These actions follow a detailed examination conducted after the launch of the 2022 Climate Agenda and will be integrated into the ECB’s operational functions, including monetary policy and banking supervision. The ECB will continue to monitor and improve its climate initiatives and contribute to the development of climate policies at the European and international levels.
Source: Banca d’Italia
