The fight against climate change and the transition to a carbon-neutral economy requires the mobilisation of a large volume of resources to fund the necessary investments. The financial system has a very important role to play in channelling these resources. Numerous initiatives have been launched by public and private institutions in recent years, to mobilise funding for a transition that will enable climate change to be addressed. At the European level, the work of the European Commission to develop an EU strategy on sustainable finances is notable. An example of this is the creation of an environmental taxonomy.
While, given its nature, the main role in this area corresponds to governments, central banks can play an important role as catalysts and lead by example, to help achieve the Paris Agreement objectives. In particular, the areas central banks are working on include the incorporation of climate change into the implementation of monetary policy and the incorporation of sustainable and responsible investment criteria in the management of their own asset portfolios.