ECB to incorporate climate change into monetary policy ops

ECB


Frankfurt, July 5 : The European Central Bank (ECB) on Monday announced measures to incorporate climate change into its monetary policy operations. By taking climate change considerations into account, the bank aims to incentivize companies and financial institutions in the euro area to reduce carbon emissions, reports Xinhua news agency. "With these decisions, we are turning our commitment to fighting climate change into real action," says ECB President Christine Lagarde. The ECB promised to prioritize issuers with better climate change performance through the reinvestment of the redemptions of the corporate bonds it bought through its bond-buying programs. Limitations will be put on collateral assets issued by entities with a high carbon footprint. The measures also necessitate climate-related disclosures for companies and debtors that use marketable assets and credit claims as collateral under the framework of the Corporate Sustainability Reporting Directive as of 2026. Regarding risk assessment and management, the bank pledges to "better include climate-related risks". The ECB fell short of disclosing details of the measures but revealed that it will start publishing climate-related information on corporate bond holdings regularly as of the first quarter of 2023. It initiated an array of bond-buying programs as part of its non-standard monetary policy measures in mid-2014. Although the programs came to an end as of end-June, the ECB will continue to reinvest the maturing securities it bought through the programs. Data from the central bank's official website show that the total holdings under its Asset Purchase Program stood at 3.25 trillion euros and those under the Public Sector Purchase Program topped 2.58 trillion euros at the end of May. /IANS




Related

'Har Ghar Tiranga' gets huge response in Kerala
[Chikmagalur: People hoist the national flag at their homes as part of 'Har Ghar Tiranga' campaign under 'Azadi Ka Amrit Mahotsav' celebrations to com

Mohan Bhagwat, RSS, Sangh leaders put Tricolour as DP on social media accounts
[New Delhi: Union Minister for Commerce and Industry Piyush Goyal arrives to hoist the national flag at Gandhi Darshan Museum, in front of Rajghat on

Idgah Maidan row: BJP all set to celebrate festivals, confrontation feared
Bengaluru, Aug 11 : The Idgah Maidan row appeared to be escalating as the ruling BJP was all set to celebrate festivals at the controversial site loca