Taking Action Now: Keeping Climate Change on the Agenda

Climate change is one of the most pressing challenges of our time, and it is essential that we take action to address it. Christine Lagarde, President of the European Central Bank, recently wrote a blog post on the ECB website to discuss the importance of keeping climate change on the agenda.

Lagarde emphasizes the need to account for the impact of climate change on our economy, as it can have a significant effect on prices and inflation. She points out that extreme weather events can damage infrastructure, ravage harvests and disrupt supply chains, leading to higher prices and making it harder to keep prices stable.

The ECB is taking steps to incorporate climate change into their work, such as adjusting their corporate bond holdings, collateral framework and risk management practices to better account for climate-related risks. They are also analysing the impact of climate change on the economy and financial stability, and working to reduce the environmental footprint of their day-to-day corporate activities.

Lagarde also stresses the importance of international cooperation and transparency in order to achieve the long-term transformation needed to green our economy. Pricing in the negative effects of carbon, plentiful investment in innovative green technology and climate adaptation, consistent and comparable climate-related disclosures and clear and timely transition paths with intermediate milestones are all essential steps in this process.

We must all work together to ensure that we can turn the page and continue our story. We must take action now to prevent the worst effects of climate change, and ensure that our economy is green and sustainable for the future.