FRANKFURT Reuters A major role in tackling climate change may go beyond the European Central Banks mission and competence, Belgian policymaker Pierre Wunsch said, weighing in on a debate that could reshape Europes most powerful financial institution.

The ECB is reviewing its role in fighting climate change, with options under consideration including the skewing of asset purchases or access to central bank funding to punish polluters and reward sustainable firms.

A key justification would be that markets are not correctly pricing climate risk but Wunsch raised doubts about the validity of this argument, which has been made by ECB chief Christine Lagarde and board member Isabel Schnabel, among others.

Im never comfortable with the idea that we can beat the market systematically, Wunsch told Reuters on Tuesday.

The burden of proof should be on us. We should really prove that some risk related to climate is not taken into account by the market, he said in an interview.

Wunsch said that while available risk assessment may be flawed and in need of improvement, there was no evidence of a systemic, persistent bias.

The ECB should support more complete disclosure by banks on their climaterelated risks and policymakers should also factor climate change into their analysis, he added.

But trying to impact market pricing could inflate bubbles and risked encroaching beyond the ECBs traditional sphere into politics, Wunsch, a member of the ECBs Governing Council, said.

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