ECB's Villeroy says central bank should integrate climate change in economic models
Comments by ECB governing council member, Francois Villeroy de Galhau
- ECB should account for climate risk in collateral planning
- France is not sheltered from cooling global economy
I find it interesting to see how major of a shift the whole financial industry has undertaken with this whole ESG thingy. Coeure also made some remarks on this yesterday.
However, I'm trying to think of what role does central banks have to play here besides regulatory enforcement but I reckon that raises the question of perverse incentive - especially if policymakers are also stakeholders in certain situations.