Legal & Regulatory News

European Parliament briefing on green central banking

In a briefing paper published on 30 August 2022, the European Parliamentary Research Service has explored the role of central banks, including the European Central Bank (ECB),  in the transition to net zero.  

This briefing paper explores the actions which the ECB announced under its climate action plan and compares them to the actions taken by two of its central bank peers: the US Federal Reserve System and the Bank of England.  The briefing paper focusses on the following topic areas: 

• the conduct of monetary policy; 

• prudential regulation; 

• data and modelling; and 

• how central banks can lead by example. 

The paper further highlights the  vital role the ECB could play in meeting climate targets by managing financial risks, contributing financial resources towards the transition, and sharing their internal expertise. In addition, it also looks at important developments in green central banking and the future impact of climate change on inflation. 

Click here to access the briefing paper.