The European Single Supervisory Mechanism can apply a consistent and strict standard of supervision and compare banks across national borders, meaning that risks to financial stability can be identified earlier on.
Thus, even those “green” bonds that are not eligible might have beneﬁtted from our purchases to some degree. At the same time, the impact of potentially excluding carbon-intensive ﬁrms from our portfolio should not be overestimated. Monetary policy cannot be a substitute for putting the right price tag on carbon emissions.