Environmental sustainability

Sustainable finance initiatives

Climate change-related work areas in the ECB

MAJOR CLIMATE CHANGE-RELATED WORK AREAS IN THE ECB

  • Economic analysis
    • Incorporation of climate change into macroeconomic models, and into projection methods and risk assessments
  • Monetary policy and investment portfolios
    • Climate-related aspects are part of the strategic review of monetary policy
    • Application of SRI criteria in own portfolios and in employee pension fund portfolios
  • Financial stability
    • Measurement and assessment of risks climate change may pose to the financial system
  • Banking supervision
    • Supervisors work jointly with banks to heighten awareness of the risks stemming from climate change in order to ensure that banks are capable of managing them appropriately

Source: González (2021a) File PDF: Opens in a new window (408 KB)

Main global sustainable finance iniciatives since 2015

TIMELINE OF MAIN GLOBAL SUSTAINABLE FINANCE INITIATIVES

  • 2015
    • COP21 – Paris Agreement
    • 2030 Agenda – UN SDGs
  • 2016
    • European Union ratifies Paris Agreement
    • European Commission includes SDGs in its strategic approach
    • G20 – Green Finance Study Group
  • 2017
    • Creation of NGFS
    • FSB-TCFD recommendations
  • 2018
    • G20 – Sustainable Finance Study Group
    • European Commission launches Action Plan on Financing Sustainable Growth
  • 2019
    • European Parliament declares climate emergency
    • COP-25
    • European Commission – European Green Deal
    • Creation of International Platform on Sustainable Finance and Coalition of Finance Ministers for Climate Action
    • Banking sector launches Principles for Responsible Banking and Collective Commitment to Climate Action
  • 2020
    • European Commission approves European Taxonomy Regulation
  • 2021
    • European Commission launches Renewed Sustainable Finance Strategy

Source: González (2021b) File PDF: Opens in a new window (4 MB)

European comission work on sustainable finance

TIMELINE OF EUROPEAN COMMISSION WORK ON SUSTAINABLE FINANCE

  • From 2016 to 2018
    • High Level Expert Group (HLEG)
  • From 2018 to 2020
    • Technical Expert Group (TEG)
  • From 2018 to 2021
    • Action Plan on Financing Sustainable Growth
  • From 2019 to 2021
    • European Green Deal
  • From 2020 to 2021
    • Platform on Sustainable Finance
    • Renewed Sustainable Finance Strategy (RSFS)

Source: González (2021b) File PDF: Opens in a new window (4 MB)