Likewise, climate policies may increase inflationary pressures. Currently, central banks across the world are moving to rein in staggering inflation rates. As high uncertainty about price developments can impair the smooth functioning of financial markets, taming inflation and keeping inflation expectations in check is also crucial for achieving the green transition.
Because stable prices and sound financial markets are an important condition for the green transition. In one sentence: Central banks’ task is to lay the foundations for a sustainable financial system. 5 Conclusion Ladies and gentlemen, Amid record temperatures and sky-high energy prices, a Green Europe is more needed than ever! Europe needs green finance to boost green energy!