ECB could tilt bond purchases to favour greener companies – Schnabel
Sovereign bond purchases must overcome scarcity of green bonds and limits imposed by capital key
The European Central Bank could tilt its corporate bond purchases in favour of companies with clear commitments to reduce their carbon emissions.
Executive board member Isabel Schnabel raised this possibility in a speech on June 15.
There is a growing consensus among policy-makers that ECB corporate bond purchases may be contributing to a mispricing of climate risks. The ECB corporate bond purchases are implemented irrespective of the CO2 emissions derived from their activities.
“For our
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