The Bank of Italy actively contributes to defining the action plans for incorporating climate change considerations into the Eurosystem's framework for implementing monetary policy.
The Eurosystem recognizes, and has analysed, the importance of climate-related factors and the effects of the transition towards a more sustainable economy as being among the things that could affect price stability, the level of economic activity, employment, interest rates, investment, financial stability and the channels through which monetary policy is transmitted.
The Eurosystem's monetary policy strategy envisages a programme of interventions for the 2022-2024 period that covers all areas of activity involved in managing the euro area's monetary policy: the integration of macroeconomic modelling, data collection, the development of new indicators, and the introduction of new disclosure requirements for financial instruments used as collateral for Eurosystem credit operations or for asset purchases under the monetary policy programmes.
In addition, climate-related risk assessment capabilities will be enhanced by conducting climate stress tests on the Eurosystem balance sheet as of 2022, analysing credit rating agencies' methods for taking account of climate change risks and defining minimum climate risk assessment standards for the internal risk assessment models used within the Eurosystem.
The Bank of Italy plays an active role by contributing its extensive and in-depth knowledge and analysis to all the activities under way to implement the action plans set out at Eurosystem level.
