The European Central Bank (ECB) has decided to establish a climate change centre to draw together the actions on climate issues in different parts of the bank. This decision shows the growing importance of climate change for the economy and the ECB’s policy, as well as the need for a more structured approach to strategic planning and co-ordination.
This new unit will be composed of around ten staff working with existing teams across the bank, will report to ECB President Christine Lagarde, who oversees the ECB’s work regarding the climate change and sustainable finance.“Climate change affects all of our policy areas,” said Lagarde. “The climate change centre provides the frame we need to tackle the issue with the urgency and determination that it deserves.” The climate change centre will shape and steer the ECB’s climate agenda internally and externally, building on the expertise of all teams already working on climate-related topics. Its activities will be organised in workstreams, ranging from monetary policy to prudential functions, and supported by staff that have data and climate change expertise. The climate change centre will start its work in early 2021, as reported by eureporter.co.
The new unit will be reviewed after three years, as the aim is to ultimately incorporate climate considerations into the routine business of the ECB.
The five directions of the climate change centre will be the following:
1) financial stability and prudential policy;
2) macroeconomic analysis and monetary policy;
3) financial market operations and risk;
4) EU policy and financial regulation;
5) corporate sustainability.