The growing impact of the climate crisis on the economy and the financial system requires more action

The ECB reaffirms its commitment to ongoing climate measures and will regularly assess them

Three areas to focus on for 2024 and 2025: the consequences of ecological transformation, the physical impact of climate change and nature-related risks to the economy and financial system

The European Central Bank (ECB) has decided to expand its work on climate change, identifying three main areas to guide its work in 2024 and 2025:

1. influence and the risks of the transition to an ecological economy , especially related transition costs and investment needs;
2. growing physical impact climate change and how measures to adapt to a warmer world affect the economy;
3. risks resulting from the loss and degradation of nature , how they interact with climate-related risks and how they could affect the work of the ECB through their impact on the economy and the financial system .