Analysing the Options of Aligning European Central Banking with the Goal of Achieving Climate-Neutrality in the European Union by 2050

Analysing the Options of Aligning European Central Banking with the Goal of Achieving Climate-Neutrality in the European Union by 2050

SOAS lead: Ulrich Volz

Partner institution: Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science

Funder: European Climate Foundation

Duration: 2020-21

Project Description
Against the background of the European Central Bank’s review of its overall strategy, the effectiveness of its existing tools, and the implications of climate change, this research project will conduct a comprehensive study on the alignment of European central banking and prudential supervision with the objective of achieving climate-neutrality in the European Union by 2050. The project will outline the analytical implications of climate change in the context of market-failure and market-neutrality. It will investigate the legal mandates, monetary and prudential policy frameworks and instrument toolboxes of European monetary and supervisory institutions with the aim of producing direct policy recommendations for the alignment with the objective of climate-neutrality.