The verdict on climate change is bleaker than ever before.

The remaining carbon budget to limit global warming to 1.5°C is rapidly shrinking – equivalent to just three years of emissions at current rates.

What is the scientific framework known as planetary boundaries? What’s science telling us about the economic impact of climate change? And how is the ECB addressing climate and nature-related risks?

Our host Paul Gordon speaks to Johan Rockström, Director of the Potsdam Institute for Climate Impact Research, and Irene Heemskerk, head of the ECB’s climate change centre, to find out why.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Recorded on 8 October 2025 and published on 14 October 2025.

In this episode:

01:48 Where do we stand in the fight against climate change?

What is science telling us? What could get us back on track?

05:58 Is climate change attracting enough attention?

Is it being overshadowed by other challenges, like the war in Ukraine or geopolitical fragmentation? How is climate change connected to the economy? And what level of risk are we facing?

10:30 What are planetary boundaries?

What is the planetary boundaries framework?

14:50 The phases of climate change

How has global warming evolved over time? Are we heading for disaster? Is the 1.5°C threshold a goal or a limit?

19:15 Why is our economy dependent on climate change?

Why do climate insights matter to the work of a central bank? How does the ECB take climate change into account? What risks does climate change pose to our primary mandate, price stability? And is it too late for us to take action?

23:03 What is the “right pace” for transitioning to a carbon-neutral economy?

How can we balance the need for rapid change with economic interests ?

26:15 Does every step matter?

What’s needed for an orderly transition? What progress has been made in recent years, and what decisions could accelerate it further?

31:55 Our guests’ hot tips

Johan and Irene share their hot tips.

Johan’s hot tip: The EAT-Lancet Commission on healthy, sustainable, and just food systems (published on 2 October 2025)

https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(25)01201-2/abstract

TED Talks by Johan Rockström

https://www.youtube.com/watch?v=RgqtrlixYR4 (2010)

https://www.youtube.com/watch?v=Rv-tDrv__mc (2018)

https://www.youtube.com/watch?v=8Sl28fkrozE (2020)

https://www.youtube.com/watch?v=Vl6VhCAeEfQ (2024)

Climate change and the ECB

https://www.ecb.europa.eu/ecb/climate/html/index.en.html

The ECB Podcast: The ECB’s climate and nature plan: our path to a greener future

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod240125_episode78.en.html

The tipping points of climate change – and where we stand https://www.ted.com/talks/johan_rockstrom_the_tipping_points_of_climate_change_and_where_we_stand?subtitle=en&geo=de

ECB Instagram

https://www.instagram.com/europeancentralbank/