ECB steps up climate work with focus on green transition, climate- and nature-related risks

30 January 2024

The European Central Bank (ECB) has decided to expand its work on climate change, identifying three focus areas that will guide its activities in 2024 and 2025: 1) the impact and risks of the transition to a green economy, especially the associated costs and investment needs; 2) the growing physical impact of climate change, and how measures to adapt to a hotter world affect the economy; 3) the risks stemming from nature loss and degradation, how they interact with climate-related risks and how they could affect the ECB's work through their impact on the economy and on the financial system.

To this end, the ECB has decided on a series of concrete measures in these three areas, integrating them into its ongoing tasks, including monetary policy and banking supervision, which consist of improving climate-related indicators, monitoring climate risks, and enhancing disclosure. It will continue to contribute to the development of climate-related policies in European and international fora, and commits to periodically reviewing these actions to ensure their effectiveness and consistency with its mandate.

A comprehensive overview of the work programme for 2024 and 2025 is available on the ECB's website.