The ECB’s Climate Activities and Public Trust

Central banks, including the European Central Bank (ECB), are increasingly involved in climate-related
initiatives. This study uses a June 2023 survey of German households to gauge public support for the
ECB’s climate engagement. Our findings reveal that 69% of households report increased trust in the ECB
due to its climate actions, with most noting a mild boost in trust. These households primarily value the
ECB’s broader scope and concern. A minority, comprising 17% and 20% respectively of all households,
express concerns about potential compromises to price stability or independence. In contrast, a larger
group (23% of all households) believes that the ECB’s climate efforts help the institution better achieve its
core objectives. Additionally, our analysis of an information intervention reveals that the ECB’s climate
actions have minimal effect on overall household inflation expectations. Finally, an internal survey of central
bankers reveals that while they accurately gauge the ECB’s climate activities’ effect on households’ trust,
they tend to overestimate their impact on inflation expectations. In sum, our results indicate public
endorsement of the ECB’s climate-related endeavors.