The ECB has taken a historic step: from 2026, it will introduce a climate factor into its collateral framework.
This is a significant step towards incorporating climate risks into central bank operations and helping to align financial flows with the goals of the Paris Agreement. Hopefully, similar measures will be taken in other regions.
P4NE’s Anna Luiza Behrens-Castella said:
The rules, assumptions and models that govern our economy are codified in institutions, and we know that Central banks and financial supervisors have an outsized influence on the rest of the economy. This decision by the ECB is a significant step forward, and the result of years of persistence, vision and advocacy from our partners and the ecosystem they collaborate with
Partners for a New Economy is proud to have supported the organisations advocating for these changes since 2016. Back in 2016, we supported a group of pioneering organisations to push forward this agenda, including the Council on Economic Policies and New Economics Foundation. Since then we’ve made long-term multi year funding and partnerships to these and other aligned organisations.
Under our new strategy we’ve brought a sharper focus to reimagining economic governance, pushing forward work in support of Green and Fair Central banking. Our most recent cluster of grants in this area brings together Positive Money UK and Positive Money Europe, Council on Economic Policies and UCL Innovation and Public Purpose (IIPP) to collaborate on this agenda.
There’s still work to do, but this is a significant step forward!