The first feature is enhancing the sustainability of yield curve control. Specifically, the Bank decided to allow some degree of fluctuation in the long-term yields, depending mainly on developments in economic activity and prices, while maintaining the target level for 10-year JGB yields at around 0 percent.
Governments must shoulder the greater part of the burden of driving the transition.7 Effective carbon taxes and cap and trade schemes, such as the EU emissions trading scheme, force companies and consumers to pay a more representative cost for their activities, and incentivise them to find the most efficient way to reduce emissions.