Lagarde defends that climate change is a "priority" in the ECB's strategy

MADRID, 23 Jun. (EUROPA PRESS) -

The threat posed by climate change is a priority in the strategy of the European Central Bank (ECB) due to the great influence it can have on price stability and financial stability, as indicated by the president of the entity, Christine Lagarde.

"At the ECB we have made climate change a priority in our strategy," said the Frenchwoman in her speech at the Summit for a new global financing pact, which is being held in Paris.

In this sense, Lagarde has defended the ECB's position because climate change affects inflation, which is "the beast that all central bankers want to tame."

It has also warned that it is a risk that affects balance sheets and is also important for banks supervised by the central bank, which must take into account their exposure to climate change risks.

We have adjusted our corporate bond holdings and changed our collateral and risk management to better reflect climate risks while providing incentives to support the green transition of the economy.