Christine Lagarde is expected to make the European Central Bank a pioneer in fighting climate change by slashing its purchases of bonds issued by fossil fuel companies and other heavy carbon emitters, according to a Financial Times poll of economists.
The ECB president has pledged to make tackling climate change a major part of the central bank’s strategic review of its remit and tools, which is due to be completed by the second half of 2021.
Two-thirds of the 33 economists polled by the FT believe the review will result in the ECB deciding to break with its long-held principle of “market neutrality”, which requires it to buy bonds in proportion to the overall market.
Environmental campaigners have criticised the ECB’s €248bn corporate bond purchases for reinforcing the market’s bias in favour of heavy carbon emitters such as oil and gas companies, utilities and airlines because these sectors issue more bonds than most others.
“Market neutrality was…
