While the ECB has made strides in acknowledging its role in climate change mitigation, it falls short in taking decisive and impactful actions. The recent interest rate hikes, which have hit the very investments in clean energy and energy efficiency, needed to protect ourselves against future energy price shocks, underscore this misalignment, the upcoming strategy review is a critical moment to introduce monetary policies that are up to the immense challenge we have at hand. The ECB\u2019s engagement with civil society will be key in shaping an effective monetary policy<\/em><\/p>\n<\/div>Uuriintuya Batsaikhan, Head of Research at Positive Money.<\/strong><\/p>\n<\/div><\/div><\/div>The NGOs argue that the ECB cannot afford to neglect climate and nature. There are clear recommendations in the joint document.\u00a0 Starting with the necessity for the ECB to adopt precautionary measures minimising environmentally harmful activities, aligning monetary policies with the EU\u2019s climate mitigation efforts as part of its core mandate and to develop a strategy to align its asset portfolio with the goals of the Paris Agreement.<\/span><\/p>\n<\/div><\/div><\/div><\/i>The European Central Bank’s monetary policy review provides a timely opportunity to update its climate roadmap and recognise the current challenges that we face. The inflation we experienced, which was partly driven by gas prices (2), should serve as proof that, now more than ever, the ECB needs to halt any support to environmentally harmful activities and start actively supporting the necessary transition.<\/em><\/p>\n<\/div>Clarisse Murphy, central banks campaigner at Reclaim Finance<\/strong><\/p>\n<\/div><\/div><\/div>