General

The European Central Bank announced on the 4th that it will take more measures to incorporate climate change factors into the euro monetary policy framework to reduce financial risks related to climate change and support the green transition of the economy.

The Council of the European Central Bank announced on the same day that in order to implement the goals of the Paris Agreement and the EU-related climate goals, the European Central Bank will introduce climate change factors in corporate bond purchases, collateral framework, disclosure requirements and risk management, aiming to reduce assets Financial risks related to climate change on liabilities help maintain price stability in the euro system and support the green transition of the economy.

In addition, the European Central Bank proposed to provide incentives for companies and financial institutions to promote carbon emission transparency and reduce carbon emissions.

European Central Bank President Christine Lagarde said that the European Central Bank is implementing its commitment to tackling climate change into action, and will take more steps to achieve the goals of the Paris Agreement.