Climate Changed
ECB Considering Stress-Testing for Climate Risks, Guindos Says
- Central banks need to pay more attention to climate change
- European Central Bank Vice President speaks in London
Firefighters ride down a flooded street in Saint-Etienne-au-Mont, near Boulogne-sur-Mer on Nov. 5.
Photographer: Denis Charlet/AFP via Getty Images
This article is for subscribers only.
The European Central Bank has considered adding climate-related risks to its stress-test scenarios, the institution’s Vice President Luis de Guindos said.
“Central banks will have to pay more and more attention to these types of issues,” Guindos said at a BNP Paribas event in London. He cited financial-stability issues related to global warming including the transition to lower-carbon growth models and the physical risk emanating from increasing natural disasters. The implications for monetary policy will be an important feature of discussions in the coming quarters, he said.