Monetary policy implementation

Climate change and the transition to a more sustainable economy affect the outlook for price stability through their impact on macroeconomic indicators such as inflation, output, employment, interest rates, investment and productivity; financial stability; and the transmission of monetary policy. Moreover, climate change and the transition to a low-carbon economy affect the value and the risk profile of the assets held on the Eurosystem’s balance sheet, potentially leading to an undesirable accumulation of climate-related financial risks.

Consequently, the Eurosystem is implementing an action plan to continue to incorporate climate considerations into its monetary policy framework:

  • The Eurosystem´s Action Plan
    • Corporate sector asset purchases
    • Collateral framework
    • Disclosures as a requirement for eligilibity as collateral and asset purchases
    • Statistical data for climate change-related risk analyses
    • Enhancement of risk assessment capabilities
    • Macroeconomic modelling and assessment of implications for monetary policy transmission

Decisions taken

Documents of interest