The “bell” rings governor of the Bank of Greece for the consequences it may have on the price index, the hot summer that we are waiting for.

Speaking today at the Capital Market Commission’s conference on climate change, Mr. Stournaras said that the excessive rise in temperature in the summer months puts upward pressure on food prices, particularly in warmer countries.

As Mr. Stournaras pointed out, referring to the actions taken by the Central Banks to deal with climate change, the ECB has begun to take climate change into account in the reinvestment of corporate bonds, seeking to purchase them from issuers that show better climate performance, and gradually integrates climate change issues into its analyses, macroeconomic forecasting models and risk management.

In this context, the common position of the central banks of the Eurosystem – including the Bank of Greece – for the application of sustainable and responsible investment principles in the management of portfolios, which are not related to monetary policy and the publication of financial data concerning the their climate footprint, as early as March 2023. In addition, the ECB is expected to introduce climate change data disclosure as a new eligibility criterion for assets offered as collateral in monetary policy operations.

For its part, the ECB’s Single Supervisory Mechanism has conducted stress simulation exercises to assess the financial impact of climate change on systemic banks in the euro area, while encouraging banks to integrate climate risk assessment into their credit processes and in the general assessment of credit risk.

However, as Mr. Stournaras pointed out, in addition to the risks created by climate change, the actions to deal with and adapt to climate change can also be opportunities, if they are treated as investments that will bring new, more efficient and more sustainable forms of development, towards a more resilient and green economy.