The ECB has successfully performed its main task in the context of an independent monetary policy: The euro is stable and enjoys the confidence of the population and the economy. Regarding sustainability, the ECB has so far displayed varying degrees of ambition. The ECB on its own can, and...

The different central banks follow their own different paths to sustainability. The article asks, what types of sustainability they already practice. It describes progressive strategies, looks at the learning processes and analyses the shortcomings. The Network for Greening the Financial System...

"What should be the role of the ECB in tackling the socio-ecological challenges related to planetary boundaries, such as climate change and loss of biodiversity? A clear answer to this question is still lacking, in spite of the strategy review of 2021. Regretfully, this review has not received...

This paper develops an environmental dynamic stochastic general equilibrium (E-DSGE) model with heterogeneous production sectors. In particular, the model comprises some low-carbon emission firms that finance their investments and production only through banking loans, and high-carbon emission...

We study the preferential treatment of green bonds in the Central Bank collateral framework as an environmental policy instrument. We propose a macroeconomic model with environmental and financial frictions, in which green and conventional entrepreneurs issue defaultable bonds to banks that use...