Over 15 trillion euros to be invested… The volume of green bonds and products is rapidly growing. Think about investments in renewable energy. To achieve the EU’s 2030 goals of the Paris Climate agreement, including a 40% cut in greenhouse gas emissions, we need to bridge an investment gap of 180 billion EUR per year.
If the economy builds more supply than usual, that will put downside risk on inflation; if less, that will create upside risk to inflation, and it is our job to balance those risks. Of course, these are not the only issues we are watching closely. My colleague, Deputy Governor Tim Lane, listed many of these in his progress report speech last week.