The European Central Bank regularly claims it must respect the “market neutrality” principle and therefore not support explicit climate goals. However our research shows this principle is not so much a legal requirement than a self-defined doctrine.
Since 2014, the ECB has been quietly subsidizing the German and French car manufacturing sector, through its asset-backed securities purchase programme (ABSPP).
Questioned by French members of Parliament, the ECB’s board member said the ECB can help fighting climate change.
Contrary to common belief, the European Central Bank’s current mandate and legal framework already gives ample room for action in the field of climate change. Now is the time to move the debate to the next stage: policy design.