ECB Governing Council member Panetta says the central bank must assess climate impact.

European Central Bank Governing Council member Fabio Panetta said the core role of monetary authorities in climate policy is to assess the relevant impacts. The Bank of Italy governor said in a speech at a conference in Manila that designing and implementing measures to mitigate global warming is the task of governments with political legitimacy. "Central banks and supervisors have different but clearly defined responsibilities. We need to understand how climate-related risks affect inflation, economic activity and financial stability, so as to ensure that monetary policy, financial supervision and risk assessment remain effective," Panetta said on Monday. "The challenge we face is not to expand our own mandates, but to fulfill our existing statutory responsibilities in a changing environment," Panetta said. The Bank of Italy governor said climate change policy requires coordinated efforts by multiple parties to ensure results. "No single institution can achieve these goals alone," he said. "Governments, financial intermediaries, insurance companies, enterprises, multilateral development banks and central banks each have their own roles, with complementary responsibilities. International cooperation is also crucial."