04 November 2021

The ECB pledge on climate change action

On the occasion of the 2021 United Nations Climate Change Conference (COP 26),the ECB pledges to contribute, within its field of responsibility, to decisive action bypolicymakers to implement the Paris Agreement and mitigate the consequences ofclimate change.

The Paris Agreement sets out – amongst other aims – the objective of making
finance flows consistent with a pathway towards low greenhouse gas emissions and
climate-resilient development.1 The financial sector has a key role in the transition to
a greener society by mobilising funds towards a more sustainable economy.
We are committed to do our part to achieve this aim. To that end, the Governing
Council on 8 July 2021 decided on an action plan, with an ambitious roadmap to
further incorporate climate change considerations into its monetary policy framework.
In the field of European banking supervision, the ECB has identified climate-related
risks as a key risk driver affecting the banking sector, and we have set out ambitious
actions in our supervisory priorities for 2021.

To make a difference in tackling climate change, central banks and supervisors
across the world need to work closely together. The ECB is an active member of the
Network of Central Banks and Supervisors for Greening the Financial System
(NGFS), which has today published the NGFS Glasgow Declaration – Committed to
Action outlining the collective global efforts of central banks and supervisors towards
greening the financial system and managing climate-related risks.2 Our pledge
complements the NGFS declaration.

In line with its recent decisions, the ECB pledges to contribute, within its mandate, to
goals of the Paris Agreement and to the efforts of the NGFS with the following
specific actions. ...

more at ECB

1 Article 2.1.(c) of the Paris Agreement, 2015.
2 The recommendations to central banks, supervisors, policymakers and financial market participants are

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