(Bloomberg) -- The European Central Bank's efforts to tackle the fallout from climate change haven't been derailed by turmoil from Russia's war in Ukraine, according to an official.
“Does it influence our agenda? I think so far not,” Irene Heemskerk, head of the ECB's climate change center, said on Tuesday. “We're still moving forward with our plans and of course if there needs to be adjustment made, we'll do so, but for now it's really on top of our agenda.”
Read this for more on the ECB's efforts on climate change
The ECB is pushing euro area lenders to prepare for potential losses from climate change and is holding a detailed stress test this year. The central bank has also committed to take account of its impact in its monetary policy framework.
Speaking at a conference organized by German finance lobbies, Heemskerk said that while she “felt a bit reluctant to talk about climate change when people are dying not so far from our homes,” authorities “shouldn't lose sight of this other crisis that we have looming on our horizon and is already here today.”
Read this for more on the spillover from the war for European banks
Russia's invasion of Ukraine has “opened discussions on Europe's energy independence and the possibility of speeding up the transition toward a low carbon economy,” said Heemskerk, who reports to ECB President Christine Lagarde.
“This jump, this transition would likely cost us more in the short run due to a rising demand and the constrained supply of key materials and energy sources, but it highlights the crucial paradox in the price we have to pay to fight climate change,” she said. “We know that even if a green transition involves cost and investment, inaction will be far costlier in the long run.”
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