“Acting against climate change should be a central element of the strategy of any central bank”

Tribune. While more and more central banks are looking into the climate issue, they still refuse to put in place measures that will contribute to the ecological transition. The European Central Bank (ECB) is emblematic of this paradox.

After decades of inaction, it has formally recognized the importance of climate issues and the need to integrate these into its monetary strategy to fulfill its missions. A first step which echoes the call of more than 170,000 Europeans, without responding to it.

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Indeed, the measures presented by the bank do not put an end to its support for major polluters, nor do they contribute to the achievement of the European Union (EU) climate objectives, and will take several years to come into force. The hundreds of billions of Eurosystem asset purchases will continue to support the most polluting companies and their new fossil fuel projects for at least a year and a half.

The Banque de France says it is less in fossil fuels …

Private banks will be able to finance themselves by depositing these same assets with the ECB. We are therefore a long way from the ECB “pioneer in the fight against climate change” promised by the Governor of the Banque de France, François Villeroy de Galhau, in December 2020. Concretely, the new “roadmap” of the ECB postpones action, wasting precious years even as global warming worsens, moving from emergency status to “code red” for humanity.

Yet the data of the problem is clear. According to the United Nations, we must reduce CO emissions2 by 7.8% per year by 2030 to limit warming to 1.5 ° C. This reduction implies a drastic reduction in the production of fossil fuels, to the tune of 6% per year by 2030, and, as the International Energy Agency reminds us, the end of investments in new fossil fuel projects. .

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The EU, responsible for a significant share of historic emissions, must go faster and further to fight climate change and has committed to reducing its emissions by at least 55% by 2030 The Banque de France is aware of this reality. In January, it considerably restricted its investments in fossil fuels and pledged to oppose – as a shareholder – any new project.

… but results not commensurate with the problem

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