Archive

ECB's monetary policy to integrate nature

EU supervisors estimate trillions in losses from 'run on brown' assets

European financial institutions stood to lose trillions of euros from a 'run on brown' assets, financial supervisors estimated in a first-of-its-kind stress test - but the financial impacts of climate-related "transition risks alone are unlikely to threaten financial stability".

NGFS says updated scenarios signal two-to-four-times higher physical impacts

The Network for Greening the Financial System (NGFS) group of central banks and supervisors has called for more ambitious policies to tackle the 'first order' risk of climate change, as its updated scenarios showed two-to-four-times bigger physical impacts than its previous iterations.

ECB could switch from sovereign to supranational bonds amid climate concerns, says Elderson

A lack of a "clear and reliable framework" for comparing sovereign bonds with Paris goals should prompt the European Central Bank (ECB) to consider buying bonds from EU supranational issuers, says one board member.

ETS deadlines risk facilitating 'brown zombie' European industry, ECB blog says

The impending increase in carbon emissions costs under the EU Emissions Trading System (ETS) will add to energy intensive firms' financial woes, potentially undermining their ability to invest in decarbonisation, a blog published by the European Central Bank (ECB) says.

Polluting firms accelerated fossil fuel investment after Paris Agreement, study says

Banks' climate data struggles are clouding their view of price changes, ECB says

Banks in the eurozone struggle to collect even the most basic data on climate risks to commercial real estate, despite evidence that pricing "is already clearly being affected by" physical climate risks, the European Central Bank (ECB) has said.

ECB's approach fails to recognise credit risk of transitioning too fast, says US banks group

The European Central Bank (ECB)'s approach to push banks to reduce their credit risk by decarbonising is flawed, as it oversimplifies the link between emissions and default risk and fails to recognise the risk of "transitioning too fast", a US banking group has claimed.

EU banks have already reduced climate risk in response to supervision, say ECB researchers

The European Central Bank (ECB)'s climate-related supervision has already led to an improvement in banks' risk exposure and management, and increased capital allocation towards green finance, according to researchers at the central bank.

ECB to set decarbonisation targets for corporate bond portfolios

The European Central Bank (ECB) will target near-term greenhouse gas emissions reductions in its corporate bond portfolio for the first time and will consider 'remedial actions' if these diverge from a strict decarbonisation trajectory.