The role of central banks in the climate transition #3

Financing the EU Green Deal - Policy Breakfast #3


Wednesday, 22 September 2021, 08:45 – 09:30 CET

What role can central banks play in the transition towards a climate-neutral economy? Several discussions are ongoing, and FEPS debated this crucial issue with Irene Heemskerk, Head of the European Central Bank’s new Climate Change Centre, in Episode 3 of our “Financing the EU Green Deal” Policy Breakfast Series.

#3 The role of central banks in the climate transition
Wednesday, 22 September 2021, 08:45 – 09:30 CET

Economic actors are increasingly subject to physical risks related to extreme weather events that can damage infrastructure and lead to the discontinuation of economic activities. But they are also confronted with transition risks that include regulatory action, technological disruptions or changes in consumer behaviour.

Central banks and other supervisors play an essential role because climate change impacts price stability, financial stability and the safety and soundness of financial institutions.

Therefore, the European Central Bank (ECB) and national central banks should integrate these dimensions when ensuring financial stability, in market operations and in banking supervision activities, in cooperation with European Banking Authority, by making sure banks integrate climate risks in their risk management policies, procedures, practices, and pricing policies.

FEPS dove deeper into this very important issue with Irene Heemskerk, the freshly appointed Head of the European Central Bank’s new Climate Change Centre, that will shape and steer the ECB’s climate agenda and that reports directly to President Lagarde.

The presentation was followed by two short interventions from Jens van’t Klooster, postdoctoral fellow at the KU Leuven and Julia Symon, Senior Research and Advocacy Officer, from Finance Watch, who acted as discussants. Saïd El Khadraoui, FEPS Special Adviser on the Green Deal, moderated the session.


ℹ️  Sustainable Finance and the Issue of Greenwashing is the 3rd Episode of the Policy Breakfast Series “Financing the EU Green Deal”

Find all related publications

Talking Green in Europe

Lessons on re-framing the public debate on the climate crisis

Just Transition & Revitalisation – A New EU Strategy for Rural Areas

How can EU actions support the revitalisation of rural areas? How can EU institutions put […]

European Industrial Policy: A crucial element of strategic autonomy

European Strategic Autonomy series - Economy & Trade

A macro-development perspective on euro area imbalances

By FEPS and Initiative for Policy Dialogue (IPD), founded by Nobel Laureate Joseph E. Stiglitz.
Find all related events
03 - 04/06/2022
Stockholm (Sweden)

Just Transition: The path to a healthy planet for the prosperity of all

Stockholm (Sweden), 3 June 2022 Urgent action is needed to prevent the breakdown of our climate and […]

Policy Measures for a Just Transition

12 May 2022 Ideas for Designing a Structural Transformation to Reduce Inequalities Policy discussions in […]
30 - 31/05/2022
Berlin (Germany) | Online

Day of Progressive Economic Policy 2022

Hybrid Conference, Berlin (Germany), 30-31 May 2022 We are embarking on the frequently invoked “decade […]
Find all related news

FEPS launches ‘Recovery Watch’, a new research project

The National Recovery and Resilience Plans represent the new framework in which member states will identify their […]

Call to participants: Training Days for Social Business

Switzerland, September 3rd 2022

Prof. Stiglitz: NextGenEU was a step forward, but the EU needs more flexibility

The Nobel Laureate in Economics Prof. Joseph E. Stiglitz speak out about EU’s economic governance and fiscal rules […]

FEPS joins the European Alliance for a Just Transition

We are delighted to announce that FEPS joins the European Alliance for a Just Transition […]
Find all related in the media
In the media

Leaders Must Choose a Just Energy Transition and a Social Europe

by Euractiv 30/05/2022

The circular economy and green jobs

by ENCOMPASS 25/05/2022

Da Prodi a Rodrigues, domani al via la ’Terza conferenza sul futuro dell’Europa’

by La Nazione 25/05/2022

Belgians resigned but not yet panicking as prices continue to rise