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Weidmann in favour of market neutrality over green biases (1/2)

ECB

The FT has run a story in which it quotes Bundesbank President Jens Weidmann as saying "it is not up to us to correct market distortions and political actions or omissions", adding that "the market price of carbon" is an issue for governments to address — not central banks."

  • Part of the ECB's strategic review is looking into how the ECB can address climate change. It is a fairly uncontroversial and consensus position among ECB members who have made speeches that the ECB should shrink its own carbon footprint and as the FT quotes Weidmann as saying "consider the impact of climate risks on monetary policy and check that banks were taking them into account."
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