Central banks at the heart of the greening of the economy

Session 27 of the 22nd Rencontres Économiques d'Aix-en-Provence, 9 July 2022.
Speakers :
Lorenzo BINI SMAGHI
Jezabel COUPPEY SOUBEYRAN
Marouane EL ABASSI
Olivier NICOLAS
Lucrezia REICHLIN
Isabel SCHNABEL
Olivier GARNIER

The financing needs for greening are massive. How should the financial system respond? Can the markets for this financing be organised spontaneously? What will be the role of supervisors in ensuring an orderly adaptation of financial institutions? What are the financial risks associated with the transition to a low-carbon economy?
Central banks cannot be the deus ex machina of the climate transition. Public policies in this area are primarily the responsibility of parliaments and governments. However, greening (or the lack of it) will directly or indirectly affect monetary and financial stability, and therefore the conduct of monetary policy: what impact will greening or a carbon tax have on inflation, activity and productivity?