Photo: Francisco Seco, Associated Press
The president of the european central Bank, Christine Lagarde
The president of the european central Bank, Christine Lagarde, has promised Wednesday to consider all the ways to green-up the monetary policy, including through an emphasis on asset purchases green.
“I want to explore all avenues available to combat climate change,” she told the Financial Times in a video interview, adding that” in the end, money talks “.
It was already a given that the fight against climate change would have its place in the future strategy of the monetary policy of the european central Bank (ECB), a project launched in the beginning of the year and which has been delayed because of the pandemic of COVID-19. Questioned on the fact whether the fight against climate change could be eclipsed by the need to defeat the pandemic, the French replies, ” those who would be tempted by this option would live to regret it “.
“This is the first time “, also, that Ms. Lagarde will advance as well “speaking of all of the operations” of the institution that can be greened, said on the side of the ECB.
A track, evoked by the analysts, would be to “green up” more redemptions of public and private bonds, the famous ” QE ” by which the ECB has committed nearly $ 2800 billion euros ( from 2015 to support the economy, orienting it more towards the obligations respecting environmental criteria.
According to a study by the ECB dating back to 2018, the ECB already held in the portfolio almost 20% of the bonds issued by euro zone companies with the label “green”, and 24 % of those from States or international organizations, on a segment of the market that develops for to not of the giants. The euro is already confirmed as the first global currency in the emissions of green bond, strengthening its place as the currency of choice for responsible finance, according to a report published in June by the ECB. The issuance of its first green bond by the German Bund as of September, will build on this position.
Activists environmental have recently required the ECB to ensure its balance sheet of bonds issued by groups emitting a lot of CO2, such as hydrocarbon producers. The president of the federal Bank of Germany, Jens Weidmann, was estimated in February that the central banks ” can and should do more for the climate than previously “. But according to him a “QE green” may not be the solution, because the interventions of central banks in the framework of the monetary policy must remain “neutral” as required by the european Treaty, that is to say, reflect the composition of the securities available on the market.
Ms. Lagarde has called in June the european Commission to continue its construction in view of a classification or “taxonomy” to identify those projects that receive a “green” label or not, that still raises political difficulties.
