ECB plans to buy 'green' bonds to help climate

The president of the European Central Bank, Christine Lagarde, promised Wednesday to examine all the ways to green monetary policy, including via massive asset purchases.

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" I want to explore all the avenues available to fight climate change, " she told the Financial Times in a video interview, adding that " at the end of the day, the money is talking ." the fight against climate change would have its place in the future strategy of the monetary policy of the ECB, a project launched at the beginning of the year and which was delayed due to the pandemic of new coronavirus. But "this is the first time " that Christine Lagarde has so stepped forward " speaking of all the operations " of the institution that may be green, confirms a spokesperson for the ECB, as the FT wrote.

“ Greening ” public and private bond purchases

One track, since mentioned by analysts, would consist in " greening " the redemption of public and private bonds, the famous " QE " by which the ECB has committed more than 2,600 billion euros since 2015 to support the economy, orienting it towards obligations respecting environmental criteria.

The Frenchwoman revived her vision of a green monetary policy at a time when " some could believe that the fight against climate change would be postponed because of the coronavirus pandemic ", according to this spokesperson for the ECB. The euro is already asserting itself as the world's leading currency for green bond issues, strengthening its place as the currency of choice for responsible finance, according to a report published in June by the European Central Bank.

Christine Lagarde also called in June the European Commission to continue its work with a view to a nomenclature or " taxonomy " to identify projects that can receive a label " green " or not, which still raises political difficulties.