ECB to set up dedicated climate change unit

The European Central Bank is to launch a dedicated climate change unit as part of efforts across the eurozone to transition to a greener economy.

Announced by ECB president Christine Lagarde on Monday, the unit will advise the bank on how best to incorporate environmental issues into both monetary policy and banking supervision.

In a speech, Lagarde said: "We are launching a new climate change centre to bring together more efficiently the different expertise and strands of work on climate across the bank. Climate change affects all of our policy areas.

"The climate change centre provides the structure we need to tackle the issue with the urgency and determination that it deserves."

The unit will be run by around 10 employees who report directly to Lagarde, according to Reuters.

Lagarde added: "Climate change is one of the greatest challenges faced by mankind this century, and there is now broad agreement that we should act.

"But that agreement needs to be translated more urgently into concrete measures. The ECB will contribute to this effort within its mandate, acting in tandem with those responsible for climate policy."