ECB to push climate-friendly investments
The European Central Bank on Monday unveiled plans to integrate climate change into its monetary policy in a bid to encourage eurozone businesses to pay more attention to their environmental impact.
The steps by the ECB's governing council "aim to better take into account climate-related financial risk" and "support the green transition of the economy in line with the EU's climate neutrality objectives", the central bank said in a statement.
Under the new plans, the ECB will aim to "gradually decarbonise corporate bond holdings" from October 2022, shifting them towards issuers with better climate performance.
This will be measured through indicators such as lower greenhouse gas emissions, more ambitious carbon reduction targets and better climate-related disclosures, the ECB said.
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