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.

Combating climate change – What central banks can and cannot do
Jens Weidmann

The Eurosystem should consider only purchasing securities or accepting them as collateral for monetary policy purposes if their issuers meet certain climate-related reporting obligations,” said Mr Weidmann in a speech given at the European Banking Congress in Frankfurt am Main. 

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.