But our experiences with new instruments have also been positive. [15] Amongst other things, a Bundesbank study confirms that forward guidance has successfully steered long-term interest rates in the ECB Governing Council’s desired direction over the last few years, thus probably helping to support euro area economic activity. [16]  5 Climate change and central banks Ladies and gentlemen, As part of the strategy review, we will also tackle the question of what role central banks should play when it comes to climate action.
Climate change and climate action have indeed been attracting growing public attention of late. One thing is clear: climate action is a matter for elected governments and parliaments. They have the right tools at their disposal, such as taxes on CO2 emissions or emissions trading. And they have the necessary democratic legitimacy to use them.