Important elements of a Green CMU include corporate sustainability disclosures, green financial products with official EU seals, such as the EU Green Bond Standard, and harmonised regulation and supervision for sustainable finance. A Green CMU would both make the EU economy more resilient and more environmentally sustainable. But what role can central banks play in tackling climate change?
1/3  BIS central bankers' speeches  Climate-related risks are a source of instability and financial vulnerability. Physical and transition risks, like more frequent and more extreme weather events or a late and abrupt transition to a low-carbon economy, could affect the transmission of monetary policy and pose risks to price, financial and economic stability.