The European Central Bank (ECB) holds “3.5%” of its equity in green bonds, and “we plan to increase this share over the coming years”, said the President of the Monetary Institute, Christine Lagarde, on Monday 8 February in Brussels, during a debate in the European Parliament.
Among other measures contributing to the fight against climate change and in line with the ECB’s mandate, Mrs Lagarde said that since the beginning of the year, bonds linked to environmental performance targets have been “eligible” as collateral for European System of Central Banks (ESCB) credit operations and for monetary policy operations. Likewise, ESCB investments in non-monetary operations must now follow principles of sustainability and accountability.
We aim to start making annual climate-related disclosures for these types of portfolios within the next 2 years, said Mrs Lagarde.
The President of the ECB also considered that the Next Generation EU European Recovery Plan is capable, as of this year, of strongly stimulating growth in the European Union (see other news). It is essential that the funds are disbursed quickly and used to support structural reforms and investment projects, she stressed. (Original version in French by Mathieu Bion)