ECB Policymaker Sleijpen Links Fossil Fuel Dependency Reduction to Inflation Control

Olaf Sleijpen, a member of the European Central Bank (ECB) Governing Council, stated at the Cop31 climate conference that reducing reliance on fossil fuels would not only cut emissions but also help curb inflation. He emphasized that addressing climate risk is a core responsibility for central banks, as it directly impacts inflation, credit risk, and the stability of the financial system. Sleijpen highlighted that the economic costs of transitioning away from fossil fuels are small compared to the costs of unmitigated climate change.