A new report gives a clear pathway for the ECB to be playing a much bigger role in making the green transition affordable. It suggests alternative steps that would speed up and key actions that are needed to fight climate change on a larger scale. The report also warns that the EU’s new Omnibus legislative package – which weakens corporate sustainability reporting – could reduce the availability of high-quality green data. This would make it harder for the ECB to run the most ambitious version of a green refinancing programme.
The new US shift on monetary and climate policy has created a rare opening for Europe. With strong green finance rules and the European Central Bank integrating climate risks, the EU can position the euro as the world’s leading green currency. This Böll EU Brief outlines how ‘green internationalisation’ could boost Europe’s strategic power.
This study shows that climate change requires central bank intervention and that – in anticipation of climate risks – the ECB can and should double down on its pledges to green central bank activities. Against this background, the report identifies numerous concrete policy options, from enhancing green tilting approaches in asset purchasing programmes to offering favourable refinancing terms to banks engaged in green lending.
