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.
