FROM THE MANDATE OF STABILITY TO THE MANDATE OF SUSTAINABILITY: THE BEGINNINGS OF THE GREEN ORIENTATION OF THE EUROPEAN CENTRAL BANK
DOI:
https://doi.org/10.63177/ppf.012025.29Keywords:
European Central Bank, mandate transformation, climate risks, sustainable financial instruments, green bondsAbstract
The revisions of the monetary strategy of the European Central Bank (ECB) from 2021 and 2025 show an evolution in the understanding of threats to price stability. The recognition of climate change and the introduction of the concept of "nature degradation" mean the integration of environmental factors into the assessment of macroeconomic stability. This paper contributes to the understanding of the transformation of the ECB's mandate from the classic focus on price stability to a broader concept of sustainability that includes climate aspects. By analyzing the beginnings of the green orientation in monetary policy, the paper sheds light on the new instruments used by the ECB, as well as the challenges this reversal brings. Instruments such as green bonds and adapted credit policies represent an important step towards a sustainable economy, but there are challenges in terms of transparency, standardization and integration of climate risks. The work points to the need to improve the methodology for risk assessment, develop an integrated database on climate risks and strengthen coordination between monetary and regulatory authorities.
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