Alternative organizations have published a climate policy ranking of the central bank and supervisory policies of the G-20 countries. The eurozone is not at the top.
Dhe European Central Bank (ECB) wants to do more for climate protection in the future – for the moment, a current study confirms that it is at least not at the top of the world on these issues. In the report, which was published by associations and non-governmental organizations under the leadership of the organization “Positive Money”, the central banks of the 20 most important industrialized and emerging countries (G 20) were assessed in terms of climate policy. The European Union and the ECB come in fifth. Although the central bank recently described climate change as a “main source of systemic risks”, it has disappointed in the ranking, it said.
The report highlights that central banks as a whole lacked effective measures to bring financial markets in line with the Paris climate goals. Although they are aware of the risks of climate change for financial stability and are talking about them, they have so far hardly taken climate issues into account in their policies.
Germany in seventh place
Germany ended up in seventh place. It was criticized, for example, that the Bundesbank was largely against the inclusion of climate criteria in the monetary policy bond purchase programs of the ECB. In the case of financial supervision, on the other hand, Germany achieved 15 out of 50 possible points. The approach to the disclosure of sustainability data in the financial services sector and the obligation of banks to integrate climate and environmental risks into risk management are praised.
The central banks of China and Brazil did relatively well, although both countries are struggling with severe environmental problems. It is emphasized that the People’s Bank of China has been involved in the field since 1995 and is doing a lot. Examples are interest on the minimum reserves of banks, which depend on environmental criteria, and the acceptance of green bonds as collateral for credit transactions. Brazil’s central bank is struggling to limit lending for environmentally harmful activities in the Amazon region. “In the context of the current Bolsonaro administration, the outlook for environmental policy in Brazil is weak, but this only increases the need for the central bank to make its own operations and the financial system it regulates greener,” the study said. The oil country Saudi Arabia came in last: it received no points in either monetary policy or supervision.