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The European Central Bank (ECB) announced the start of a major environmental shift on Monday, July 4, by introducing green criteria in some of its operations. While the full implementation of the measures will take years, they are expected to reverberate throughout the financial system. Christine Lagarde, president of the ECB, launched the project shortly after taking office at the end of 2019. At the time, the subject was still largely taboo in the very conservative world of central bankers. Some of them were concerned that the central bank would go beyond its official mandate of ensuring price stability.

In July 2021, the president won her case in principle: as part of his major strategic review, the Frankfurt institute promised “to integrate climate change considerations into [sa] Monetary policy "† This Monday's announcement is the first concrete translation of this promise. “With these decisions, we are turning our commitment to fight climate change into real action”assures m.^me The guard. "It's okay! The ECB's role for the ecological transition is essential! »MEP Aurore Lalucq, of the Place Publique party, responded on Twitter. "It's positive, but it's going very slowly"puts Stanislas Jourdan, of the Positive Money association, into perspective.

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The ECB's action will take place in three phases. From October, it will adjust its corporate bond purchase criteria. Because the monetary institution is very active in the financial markets: since 2015 it has been buying securities there to support the economy. In total, it acquired almost 5,000 billion euros, the vast majority of which was government debt. A small part, worth 344 billion euros, consists of corporate debt. The problem is that the composition of these purchases reflects the panorama of the companies present in the markets, and much of it is very polluting.

incomplete progress

A 2019 study published by the Veblen Institute estimates that 63% of corporate bonds bought by the ECB came from the economic sectors that emit the most greenhouse gases: fossil fuel production and distribution, automotive sector, power generation… As of now , the ECB announces that it "tilt" its bond portfolio to companies with “better climate performance”† It will assess them against three criteria: the level of CO2 emissions₂emissions reduction targets and the transparency with which the company discloses its carbon footprint.

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