The E-axes Forum on Climate Change, Macroeconomics, and Finance

Francesco Drudi

“Climate change and monetary policy in the euro area”

Event description

In July 2021 the ECB, upon completion of its strategy review, announced that climate change considerations will now be included in its monetary policy framework. Francesco Drudi, who was closely involved in the strategy review, will present the action plan underlying the ECB’s commitment to more systematically reflect environmental sustainability considerations in its monetary policy. In particular, he will discuss how the ECB will support governments’ and regulators’ plans to mitigate the macroeconomic and financial risks which arise from physical climate change and transition efforts; how macroeconomic modelling needs to expand in order to better project these climate-related risks; and how climate change considerations will be included in monetary policy operations in the areas of disclosure, risk assessment, collateral framework and corporate sector asset purchases.


Pierre Monnin
Senior Fellow, CEP

Francesco Drudi

Francesco Drudi is Principal Adviser in the Directorate General Monetary Policy, where he is in charge, inter alia, of assessing climate change implications for the conduct of monetary policy. He has been ECB mission chief in the macroeconomic adjustment programmes of Greece and Cyprus and head of division of Fiscal policies, Monetary Policy Stance and Capital Markets/Financial Structure. Before joining the ECB in 1998 he worked for the World Bank and Bank of Italy. He holds a Ph.D. in Finance from Stern School of Business, New York University.

Paper and slides

"Climate change and monetary policy in the euro area" (Paper)

"Climate change and monetary policy in the euro area" (Slides)



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