European Parliament backs #ECB role for #ClimateChange

| February 13, 2020
On 12 February, the European Parliament adopted by an overwhelming majority a resolution endorsing the role of the European Central Bank for climate change.
In the report adopted in Strasbourg, MEPs call on the ECB “to implement the environmental, social and governance principles (ESG principles) into its policies” and support Christine Lagarde’s (pictured) intention to deliver “a gradual transition to eliminate carbon assets’ from the ECB’s portfolio.” Further on, the report also suggests the creation of “a framework for co-ordination between the ECB and the European Investment Bank”. [1]
The report was backed by a large majority of 452 MEPs (and only 142 against and 53 abstentions), showing support from both sides of the political spectrum, including the liberals and the EPP group, while far-right groups rejected the report. Thanks to this unprecedented support, it is the first time that the Parliament’s annual resolution on the ECB Annual Report [2] includes a section dedicated to actions against climate change.
Positive Money Europe welcomes the adoption of the report, which comes as a political validation of five years of campaign to align the European Central Bank’s monetary policy with EU’s sustainability goals. Since 2015, Positive Money Europe has been warning against the fact that the ECB’s quantitative easing strategy subsidizes polluting multinationals, and pressed the ECB to favor green investments instead.
Following the vote, Positive Money Europe Executive Director Stanislas Jourdan said: “The ECB can now confidently start its strategic review [3], knowing there is agreement in principle that the bank should play a role in the EU’s climate strategy. The debate can now move on to evaluating how each of the ECB’s monetary instruments can be mobilized to best support the green transition.”
The European Parliament will have a leadership role to play in this process as well. Positive Money Europe encourages the Parliament’s ECON Committee, which is responsible for relations with the ECB, to commission in-depth research on green monetary policy, and to host further debates on this matter with experts and NGOs.
[1] The European Investment Bank (EIB) is a significant issuer of green bonds and has vowed to become the EU’s climate bank after the recent revamp of its energy lending policy. Since 2015, the ECB already purchases up to 50% of bonds issued by the EIB in the secondary market.
[2] The annual report on the ECB for 2018 is an own-initiative report led by the Parliament’s Economic and Monetary Affairs Committee (ECON). The report collects recommandations on the past and ongoing activities of the ECB. Later in April, the ECB will publish its own Annual Report, in which it usually replies to the proposals of the European Parliament. Socialist MEP Costas Mavrides is the rapporteur of the ECB Annual Report 2018.
[3] In 23 January 2020, the European Central Bank has launched a review of its monetary policy strategy, which is set to be concluded by the end of 2020. The review encompasses quantitative formulation of price stability, monetary policy toolkit, economic and monetary analyses and communication practices.


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Category: A Frontpage, Climate change, CO2 emissions, Environment, EU, European Central Bank (ECB)

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