Addressing Climate Change in Financial Systems

Climate change, and policies that governments implement to address it, increasingly have macroeconomic impacts that are relevant for Central banks. But, within their remit, what actions can monetary policymakers take, and what actions should they take? These are questions that Frank Elderson is well qualified to answer. He is a member of the Executive Board of the European Central Bank and Vice-Chair of the Supervisory Board of the European Central Bank, he is co-Chair of the Task Force on Climate-related Financial Risks of the Basel Committee on Banking Supervision, and he was the first Chair of the Network of Central Banks and Supervisors for Greening the Financial System. He tells Tim Phillips about the instruments available to the ECB, the contribution of the NGFS, and the limits of monetary policy in addressing the urgent challenge of climate change.