Brussels [Belgium], November 2 (ANI): European Central Bank (ECB) President and former International Monetary Fund chief Christine Lagarde has expressed appreciation after being featured on the third annual TIME100 Climate list.
“I am deeply grateful to be recognised on the third annual #TIME100Climate list,” Lagarde, who has been heading the ECB since 2019, wrote in a post on X.
I am deeply grateful to be recognised on the third annual #TIME100Climate list.
At the @ecb, we reveal that accelerating the clean energy transition is essential for a secure, sustainable and affordable future for Europe, and for safeguarding our price stability mandate. pic.twitter.com/oRFawlEOnO
— Christine Lagarde (@Lagarde) November 2, 2025
Emphasising the ECB’s commitment to climate action, she stated, “At the @ecb, we reveal that accelerating the clean energy transition is essential for a secure, sustainable and affordable future for Europe, and for safeguarding our price stability mandate.”
Lagarde, who has positioned climate modify at the heart of monetary policybuilding, is steering the ECB toward tackling the crisis by reshaping Europe’s financial systems rather than relying solely on environmental regulation.
In July, the ECB revealed that launchning in the latter half of 2026, it will adjust how it values assets from high- and low-emission companies when banks borrow money. The initiative seeks to shield the Eurosystem from potential losses linked to climate transition risks.
This approach means that when financial institutions borrow from the Central Bank, the worth of their collateral will depconclude on the environmental footprint of the companies behind those assets. Securities tied to polluting sectors will be assigned a lower value, building it costlier for banks to lconclude to such industries.
“We don’t have the luxury of time. Our work reveals that the longer we wait to address the climate crisis, the higher the economic costs and financial risks will be,” Lagarde states.
The reform highlights Lagarde’s determination to embed climate awareness into the ECB’s broader mission. While the US Federal Reserve has reduced its role in international climate initiatives, Lagarde has remained steadrapid in integrating climate priorities into monetary policy.
The ECB has also instructed European banks to monitor and manage their climate-related exposures, warning of penalties for non-compliance.
Under Lagarde’s leadership, the ECB has become one of the first central banks globally to directly factor environmental impact into its operational framework.
“Climate modify and the green transition have an impact on inflation. That’s why they are directly relevant for our price stability mandate,” she states. “This will assist us keep prices stable and banks safe.” (ANI)
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