Climate change considerations in monetary policy implementation : compilation of papers

Climate change and monetary policy are becoming increasingly intertwined. The relationship between climate risk and inflation is non-trivial, presenting the ECB with a number of trade-offs in its monetary policy operations. Lately, the ECB has stepped up its efforts to embed climate change considerations at the heart of its monetary policy framework, yet recent inflationary pressures threaten to water down the effectiveness of its actions, including the tilting of its bond portfolio towards green issuers. Four papers were prepared by the ECON Committee's Monetary Expert Panel on the integration of climate change considerations in the conduct of monetary policy by the ECB. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 November 2023.