Formulating transition plans with these characteristics must be one of the top guiding principles for banks as they step up their risk management to address the effects of the climate crisis. It was also in this context that the European Union raised its 2030 climate ambition in what is called the Fit for 55 package.
In the same vein, the ECB’s focus on these transition plans would be less on the year 2050, but rather on the intermediate points in time: 2025, 2030, 2035, 2040. Why?