EUROPEAN CENTRAL BANK: CLIMATE CHANGE POLICY

Анотація

Objective. The objective of the article is to establish the features of the policy of the European Central Bank in the field of climate change. Methods. In the research process, the following general scientific methods and methods of cognition are applied: methods of scientific abstraction, analysis and synthesis (to study the impact of climate change on the economy and the financial sector), systemic generalization (to systematize risks associated with climate change, determine the measures of central banks regarding minimization of the negative effects of climate change, determination of features of the policy of the European Central Bank in the field of climate change). Results. Based on the results of the conducted research, the impact of climate change on the economy and the financial sector is considered, and climate risks affecting the financial sector are identified (physical risks arising from climate-related hazards that can reduce the value of financial assets and/or increase liabilities), risks of the transition to "green" energy (due to policy changes regarding mitigation and adaptation to climate change, as well as market sentiment and technology changes that may affect the value of financial assets and liabilities), liability risks (due to liability entities for damages related to environmental damage that they may cause); measures to minimize the negative effects of climate change are defined (preliminary determination of climate risks in financial contracts, effective distribution of risks through insurance and reinsurance, assessment of the impact of a natural disaster on inflationary pressure, adjustment of monetary policy if necessary; use of more reliable quantitative assessments based on detailed impact analysis climate risks at the individual sector level; governments announcing a clear and predictable plan for future tightening of carbon policy; central banks incorporating climate variables into their macroeconomic models); the specifics of the European Central Bank's policy in the field of climate change are established (the presence of a strong normative and legal support of the policy in the field of climate change, which covers the monetary policy strategy, the action plan on climate change, the climate agenda with defined strategic priorities and measures; the presence of strategic goals and priorities in the field of climate change, which consist in managing and mitigating financial risks associated with climate change and assessing its economic impact, promoting stable financing to support an orderly transition to a low-carbon economy, sharing the experience of the ECB).

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