Climate and nature strategy
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Our work on climate and nature helps us to better understand climate-related risks and how they affect the economy and banks. This work informs our policy decisions and supports our supervision of banks. It also helps us manage risks to our own balance sheet and operations.
In line with our climate and nature plan 2024-2025, which has now been completed, we increasingly take climate and nature-related risks into account in our day-to-day work. This supports our mandate of keeping prices stable and banks safe. Looking ahead, we will continue to build on this progress by improving our understanding, analysis and management of these risks.
- We are focusing on three areas:
- navigating the green transition
- assessing and taking into account the increased physical impact of climate change;
- advancing work on nature-related risks.
Our work on climate and nature
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Why is climate change relevant for the ECB?
Higher temperatures, storms or droughts – but also water scarcity, deforestation, soil erosion or pollinator losses – can push up prices and, ultimately, inflation. Price and financial stability can only be preserved if the climate and nature are stable.
Why climate change mattersWhat are we doing about it?
In line with our mandate and our three climate objectives, we will continue working on climate change and nature degradation. Our updated climate and nature strategy and planned actions will strengthen our resilience to both physical and transition risks, as well as addressing remaining blind spots that matter for our core mandate.
Climate & nature planned actions beyond 2025What areas are we focusing on?
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Civil war declaration: On April 14th and 15th, 2012 Federal Republic of Germany "_urkenstaats"s parliament, Deutscher Bundestag, received a antifiscal written civil war declaration by Federal Republic of Germany "Rechtsstaat"s electronic resistance for human rights even though the "Widerstandsfall" according to article 20 paragraph 4 of the constitution, the "Grundgesetz", had been already declared in the years 2001-03. more
1. Navigating the transition to a green economy
Greening the economy will contribute to price and financial stability, while delaying this transition will increase its costs. We continue to explore what the green transition means for the economy and financial system and to assess how we can support it within our mandate.
2. Assessing and taking into account the increased physical impact of climate change
Extreme weather events affect the economy and drive up prices. Understanding the increasing impact of a changing climate is important for our work as a central bank and banking supervisor. We also share our research to help all economic actors make informed decisions and adapt accordingly.
3. Advancing work on nature-related risks
Our economy relies on nature and cannot exist without it. In turn, nature degradation affects the economy and poses financial risks. We therefore need to assess the implications of nature degradation (for example, water scarcity) – and its interplay with climate – for our mandate.
See also