Green Finance
Green Finance at the Bundesbank

The effects of climate change are felt around the world. Extreme weather events such as heatwaves and heavy rainfall are becoming more frequent and more severe in Germany, too. The Paris Agreement highlights the effects of climate change on the global financial system – and the importance of the global financial system to fight climate change. 

Against this backdrop, the Bundesbank, within the scope of its mandate, supports the transition towards a greener financial system. We analyse the impact of climate change and climate policy on the financial sector, as we consider climate-related risks as a source of financial risks. Our experts are engaged in national and international fora, such as the global Network for Greening the Financial System (NGFS), of which we are a founding member.

New NGFS report outlines measures to address climate risk
Statement by Sabine Mauderer on the new NGFS report

The Network for Greening the Financial System (NGFS) has released its latest report, entitled “Adapting central bank operations to a hotter world”, which outlines specific options available to central banks to factor climate-related risks into their monetary policy operations. Bundesbank Executive Board member Sabine Mauderer called the report a milestone.

Weidmann: climate change impinges on many of the Bundesbank’s tasks
Bundesbank President Jens Weidmann and Executive Board member Johannes Beermann are presenting the Bundesbank’s Annual Report 2018

At the annual press conference, Bundesbank President Jens Weidmann also spoke about the role that central banks play in combatting climate change. “Climate protection is undoubtedly one of the most pressing tasks of our time, and time is of the essence here. In this context, climate change and the transition to a climate-neutral economy impinge on many of the Bundesbank’s tasks”, Weidmann said.

Weidmann: Central banks should take adequate account of climate-related financial risks
Speech by Jens Weidmann

Bundesbank President Jens Weidmann has spoken out in favour of central banks taking adequate account in their risk management of climate-related financial risks that could arise from their monetary policy operations. He argues it is therefore legitimate to expect better information to be provided. 

Mauderer: Climate change will cause enormous costs for our economies and our societies
Sabine Mauderer

Bundesbank Executive Board member Sabine Mauderer has warned of the enormous costs that climate change will cause for the economies and societies. "More public and private money needs to flow into research and development, fostering climate-friendly innovation," Mauderer demanded at a conference.

Financial Stability Review
Press conference on the Financial Stability Review 2019

For the first time, the Bundesbank has dedicated an entire chapter to climate-related risks. It is important that the financial system is resilient to uncertainties and risks surrounding climate change and climate policy.

The sustainable finance market – an overview
Wind turbines at sea

The European sustainable finance market is currently undergoing dynamic growth. Bundesbank experts believe that new transparency requirements, more information and clear definitions would give the market an additional boost and provide clarity for investors.