Thread by @DanielaGabor

by my count, today's @Isabel_Schnabel (excellent) speech is the most hawkish on greening central banks, far more ambitious than Mark Carney's and other NGFS central banks

ecb.europa.eu/press/key/date…

central banks should move fast because markets misprice climate risks

green bonds need a proper taxonomy to address widespread greenwashing

carbon pricing, however loved in global policy circles, is a second-best policy solution because it's difficult to get a meaningful carbon price

there is an economic case for stronger environmental regulations, and no trade-offs with economic recovery

better modeling of climate risks and greening own portfolios not enough, central banks need to green their monetary policy, conventional and unconventional (watch this space for our upcoming report on greening the CSPP)

and for the @ecb this is an earth-shattering statement: market neutrality needs to be abandoned because it is inconsistent with accommodating climate risks in monetary policy operations.

(and I get my question to Phillip Lane answered)

https://twitter.com/DanielaGabor/status/1309124958761693186?s=20

penalising dirty assets by excluding them from collateral framework!

last November, I chaired the Independent Panel into Finance and Climate Change for Labour Party - our report to then Shadow Chancellor @johnmcdonnellMP anticipates all the measures now the ECB has put on the table

labour.org.uk/wp-content/upl…