Recent comments by one of the six members of the ECB’s Executive Board have reignited debate over the appropriate role for central banks in tackling climate change. Against this backdrop, we are re-publishing analysis that was originally released in early 2023. In short, while central banks have some tools to help the green transition at the margin, responsibility for tackling climate change would be best left to fiscal and regulatory policymakers.
We will be discussing the near to long-term outlook for the EU carbon price in a 20-minute online briefing at 3pm GMT on Thursday 7th March. (Register here.)
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