Banca d'Italia actively contributes to designing action plans to incorporate climate change considerations into the Eurosystem's monetary policy implementation framework.
This page will look at:
Objectives
In 2021, the ECB presented an action plan and a roadmap, with which it commits to:
- integrate climate change considerations to a greater extent into its monetary policy framework;
- expand its analytical capacity, in terms of macroeconomic models, statistics and monetary policy, with regard to climate change;
- include climate change considerations in monetary policy operations with regard to disclosure, risk assessment, collateral framework and corporate sector asset purchases;
- implement the action plan in line with the progress achieved in EU policies and initiatives on environmental sustainability disclosure and communication.
For more information:
ECB presents action plan to include climate change considerations in its monetary policy strategy
Activities
The action plan includes measures aimed at strengthening and expanding the Eurosystem's initiatives to take climate change into account and is built around a roadmap.
In 2022, the ECB adopted further measures covering all areas of activity involved in the management of monetary policy in the euro area. The measures include, with reference to market interventions:
- the selection, in monetary policy portfolios, of corporate bonds of better performing issuers in terms of lower greenhouse gas emissions, more ambitious carbon reduction targets and improved climate-related disclosures. In any case, the volume of corporate bond purchases continues to be determined exclusively by monetary policy considerations and their role in achieving the ECB's inflation target;
- the assessment of the exposure of the Eurosystem's balance sheet to climate risk.
For more information:
ECB takes further steps to incorporate climate change in its monetary policy operations
