Post by Geoffroy Marcassoli

The next climate debate may be about measurement, not targets European Central Bank’s latest climate disclosures point to an important shift in sustainable finance. Green bonds now account for 33% of the ECB’s own funds portfolio, while portfolio emissions continued to decline alongside a 13% reduction in the Eurosystem balance sheet during 2025. But the more interesting development sits beneath the headline numbers. For the first time, the ECB introduced inflation-adjusted emissions metrics, recognising that higher revenues can improve carbon intensity figures without equivalent real-world decarbonisation. This raises a broader question for markets. If climate performance changes depending on how it is measured, comparability becomes as important as ambition. The next phase of climate finance may therefore become less about announcing lower emissions and more about proving that transition progress remains economically meaningful when market conditions change. Read more in ESG News: https://lnkd.in/ddikKhgN #ClimateRisk #CentralBanking #SustainableFinance #ESG #ECB