Intervention by Isabel Schnabel, Member of the Executive Board of the ECB, at the “Greening Monetary Policy – Central Banking and Climate Change” online seminar, organised as part of the “Cleveland Fed Conversations on Central Banking”, 3 March 2021 Frankfurt am Main, 3 March 2021  Climate change is one of the biggest challenges that humankind is facing.
[1] It exposes our society and economy to substantial risks – both physical risks resulting from the greater incidence of climate-related disasters, and transition risks arising from policy responses – that could potentially impair the balance sheets of households, firms, financial institutions and central banks.