Ahead of the Governing Council retreat in Ireland on 21 and 22 May, and the ECB’s 2025 monetary policy strategy review, which is considered to be crucial, Bürgerbewegung Finanzwende, Finance Watch, Greenpeace Germany, New Economics Foundation, Positive Money Europe, Reclaim Finance, REVO Prosperidad Sostenible, The Sunrise Project, Urgewald and the Veblen Institute called, on Tuesday 21 May, on the European Central Bank (ECB) to make greater use of monetary policy to combat climate change and the degradation of nature.
The signatories welcome the ECB’s actions to integrate climate considerations into its monetary policy, such as the introduction of a green asset bias into the purchase programme, but recommend several principles, including the integration of climate and natural considerations into the core mandate.
The signatories recommend adapting the collateral framework to incorporate climate risks, and aligning the asset portfolio with the Paris objectives.
In addition, they want to see easier financing for ‘green’ investments, in particular through targeted longer-term refinancing operations, even in times of restrictions.
Finally, the NGOs recommend that climate and natural risks be integrated into credit-risk ratings across the ECB’s operations.
Link to the letter: https://aeur.eu/f/ca8 (Original version in French by Émilie Vanderhulst)