MANAGING INFLATION BY SUPERCHARGING A CLEAN ENERGY TRANSITION

The report analyzes how 'climateflation', 'fossilflation', and 'greenflation' impact price stability and proposes that the ECB align its operations with EU climate goals, implement green lending facilities for building renovation, and coordinate with the EIB and European Commission to fund a just energy transition.

• Climate change drives 'climateflation' through physical consequences such as harvest disruptions and extreme weather events, which trigger supply shocks and price volatility. These impacts are expected to amplify with every additional increment of global warming.
• Dependency on fossil fuels causes 'fossilflation', which was the primary driver of record-high inflation in the euro area between 2021 and 2022. This form of inflation disproportionately affects low-income households, who spend a higher share of their income on energy and often live in inefficient housing.
• The concept of 'greenflation'—the idea that the energy transition itself triggers inflation—is largely a myth. Clean energy is increasingly competitive and secure, and a planned, orderly transition would likely lower energy prices and reduce volatility compared to a delayed or disorderly transition.
• The ECB's primary mandate of price stability is threatened by climate-related inflations, meaning the bank must proactively support the clean energy transition to meet its objectives. This action would also fulfill its secondary mandate of supporting general EU policies.
• The ECB continues to support major polluters through its corporate asset purchases and collateral framework. The report argues that excluding companies developing new fossil fuel supply projects or those without Paris-aligned coal exit plans is a prerequisite for supporting the transition.
• The ECB could unlock significant funding for energy efficiency by implementing a 'dual rate' policy and a green lending facility. This would provide discount rates to banks for loans dedicated to building renovation, helping to fight energy poverty.
• To bridge the EU clean energy funding gap, the ECB could coordinate with the European Investment Bank (EIB) and the European Commission (EC) by purchasing 'climate' or 'just transition' bonds issued by these entities.

APA

Schreiber, P. (2022). MANAGING INFLATION BY SUPERCHARGING A CLEAN ENERGY TRANSITION. Reclaim Finance. https://reclaimfinance.org/site/wp-content/uploads/2022/09/2022.09.21_Reclaim-Finance_Managing-inflation-by-supercharging-a-clean-energy-transition-What-the-ECB-should-do.pdf

Chicago

Schreiber, Paul. MANAGING INFLATION BY SUPERCHARGING A CLEAN ENERGY TRANSITION. Reclaim Finance, 2022. https://reclaimfinance.org/site/wp-content/uploads/2022/09/2022.09.21_Reclaim-Finance_Managing-inflation-by-supercharging-a-clean-energy-transition-What-the-ECB-should-do.pdf.

Wikipedia

{{cite report |last1=Schreiber |first1=Paul |title=MANAGING INFLATION BY SUPERCHARGING A CLEAN ENERGY TRANSITION |publisher=Reclaim Finance |date=September 2022 |url=https://reclaimfinance.org/site/wp-content/uploads/2022/09/2022.09.21_Reclaim-Finance_Managing-inflation-by-supercharging-a-clean-energy-transition-What-the-ECB-should-do.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{schreiber2022managing, author = {Schreiber, Paul}, title = {{MANAGING INFLATION BY SUPERCHARGING A CLEAN ENERGY TRANSITION}}, institution = {Reclaim Finance}, year = {2022}, month = sep, url = {https://reclaimfinance.org/site/wp-content/uploads/2022/09/2022.09.21_Reclaim-Finance_Managing-inflation-by-supercharging-a-clean-energy-transition-What-the-ECB-should-do.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }