Cooperation on Climate Matters Within the ESCB

While executing its climate agenda, the NBS implements and builds upon the ECB’s recommendations. These recommendations, together with the best practices from other central banks, served as the basis for the preparation of the Climate Strategy of the National Bank of Slovakia.
In line with the ECB’s Climate Agenda, the NBS has included following areas among its priorities: analyzing the implications of climate risks and the transition to a low-carbon economy & their impact on monetary policy, expanding the methodology for assessing the impact of climate risks on financial stability, and developing more enhanced data colection.

At the project level, the NBS is also gradually incorporating the recommendations of the ECB’s Climate and Nature Plan.

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Representatives of the NBS also actively participate in the work of the European System of Central Banks (ESCB) committees and help shape its decisions.

The topics discussed in these committees are though, largely interconnected.

Monetary Policy Committee prepares proposals on how to incorporate climate factors into the implementation of monetary policy and also promotes the publication of climate indicators for the Eurosystem’s monetary and non-monetary policy portfolios.
Market Operations Committee monitors the sustainable bond market and proposes measures that take into account the impact of physical and transition risks on the value of collateral.
Risk Management Committee collaborates with the Market Operations Committee in both of the aforementioned areas while refining its methodological approaches to climate stress testing. It has also succeeded in incorporating climate change-related risks into its credit assessment systems and in implementing the disclosure requirements under the CSRD.
Financial Stability Committee systematizes the approach to assessing the impact of climate change and its integration into the macroprudential operational framework.

Cooperation within the Statistics Committee is also significant: the NBS’s representatives participate in developing indicators related to emissions and physical risks, systematize available data, and improve their interoperability.