Both of these measures – transparency standards for issuers and requirements for ratings – wouldn’t (Tonne) just make it easier for us as central banks to take climaterelated financial risks into account. If designed properly, they could also generate greater transparency beyond the monetary policy asset purchase programmes and improve the level of information on climate risk in the capital market.
With such measures, central banks could act as a catalyst for a more “green” financial system and support the climate policy pursued by the EU and its Member States without thereby risking conflict with their own tasks. 6 Public finances Besides climate action, we also face an additional major challenge: demographic change.