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ECB's Weidmann calls on cenbanks to address climate-related financial risks: FT

EconomyNov 19, 2020 01:30AM ET
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© Reuters. 29th Frankfurt European Banking Congress (EBC) takes place in Frankfurt

(Reuters) - Bundesbank President Jens Weidmann on Thursday called on the Eurosystem, which includes the European Central Bank (ECB) and the euro zone's 19 central banks, to consider climate-related financial risks before making monetary policy decisions.

"The Eurosystem ... should consider only purchasing securities or accepting them as collateral for monetary policy purposes if their issuers meet certain climate-related reporting obligations," Weidmann, who also sits on the ECB's Governing Council, wrote in an opinion piece https://on.ft.com/3lFrFF7 for the Financial Times.

Weidmann suggested that central banks should use only credit ratings from agencies that appropriately include climate-related financial risks.

He, however, pressed on the governments to do their part by increasing taxes on carbon or using "cap and trade" schemes. It is not the task of the Eurosystem to penalise or promote certain industries, Weidmann said.

With the coronavirus crisis, it is vital that the ECB keeps its monetary policy accommodative to support the economies and maintain price stability, Weidmann said.

Weidmann will be speaking to the European Banking Congress on the role of central banks in combating climate change on Friday.

ECB's Weidmann calls on cenbanks to address climate-related financial risks: FT
 

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Comments (3)
Franklin Stein
Franklin Stein Nov 19, 2020 4:56AM ET
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Central banks have no mandate to go command and control on climate change no matter what the anti-democratic WEF gang are plotting and instructing.
Whaling Trawler
Whaling Trawler Nov 19, 2020 3:08AM ET
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Great place to get full bore aggressive on climate change is China and India. The Western world is doing more than enough already.
Klaus Weyers
Klaus Weyers Nov 19, 2020 2:26AM ET
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centraö banks have no business re. climate changr
 
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