ECB’s Weidmann calls on central banks to address climate-related financial risks: FT

29th Frankfurt European Banking Congress (EBC) takes place in Frankfurt
FILE PHOTO: German Bundesbank President Jens Weidmann attends the 29th Frankfurt European Banking Congress (EBC) at the Old Opera house in Frankfurt, Germany November 22, 2019. REUTERS/Ralph Orlowski

November 19, 2020

(Reuters) – Bundesbank President Jens Weidmann on Thursday called on the Eurosystem, which includes the ECB and the euro zone’s 19 central banks, to consider climate-related financial risks before making monetary policy decisions.

“The Eurosystem … should consider only purchasing securities or accepting them as collateral for monetary policy purposes if their issuers meet certain climate-related reporting obligations,” Weidmann, who also sits on the ECB’s Governing Council, wrote in an opinion piece https://on.ft.com/3lFrFF7 for the Financial Times.

Weidmann will be speaking to the European Banking Congress on the role of central banks in combating climate change on Friday.

(Reporting by Shubham Kalia in Bengaluru; Editing by Anil D’Silva)