The new unit, which will consist of about ten staff working with existing teams across the bank, will report to ECB President Christine Lagarde, who oversees the ECB’s work on climate change and sustainable finance.
“Climate change affects all of our policy areas,” said Lagarde. “The climate change centre provides the structure we need to tackle the issue with the urgency and determination that it deserves.”
The climate change centre will shape and steer the ECB’s climate agenda internally and externally, building on the expertise of all teams already working on climate-related topics. Its activities will be organised in workstreams, ranging from monetary policy to prudential functions, and supported by staff that have data and climate change expertise. The climate change centre will start its work in early 2021.
The five work streams of the climate change centre focus on: 1) financial stability and prudential policy; 2) macroeconomic analysis and monetary policy; 3) financial market operations and risk; 4) EU policy and financial regulation; and 5) corporate sustainability.
The new structure will be reviewed after three years, as the aim is to ultimately incorporate climate considerations into the routine business of the ECB.