Cutting fossil fuel dependency could help curb inflation, says ECB's Sleijpen

European Central Bank (ECB) Governing Council member Olaf Sleijpen stated that reducing fossil fuel dependency would not only cut emissions but also help curb inflation. Speaking at Cop31 as chair of the Network for Greening the Financial System (NGFS), Sleijpen emphasized that climate risk is a core responsibility of central banks due to its impact on inflation, credit risk, and financial stability. He noted that extreme weather events are already causing significant economic losses and inflation spikes.