ECB steps up climate work with focus on green transition

On 30.01 the European Central Bank (“ECB”) presented its 'Climate and nature plan 2024-2025' (“Plan”). It should first be noted that the growing impact of the climate crisis on the economy and the financial system calls for more action. The ECB reaffirms its commitment to climate action, which will be reviewed periodically. Indeed, the ECB needs to account for the effects of climate change in the conduct of its tasks within its mandate. Additionally, without prejudice to its price stability objective, the ECB must support the general economic policies in the European Union, with a view to contributing to a high level of protection of and improvement in the quality of the environment. This includes the goals of the European Climate Law. Under Article 11 of the Treaty on the Functioning of the European Union, the ECB is also required to integrate environmental protection requirements into the definition and implementation of its policies and activities. The ECB has decided to expand its work on climate change, identifying three focus areas that will guide its activities in 2024 and 2025: the impact and risks of the transition to a green economy, especially the associated transition...