Green bonds, however, do not play an important role in this regard. Due to the small market size and low market depth, they could only be used as an addition to a portfolio. Ladies and gentlemen, to foster the necessary transition to a low-carbon economy some observers are actually calling for monetary policy to take climate risks into account.
However, neutrality is an important principle of the Eurosystem’s operational framework. In a monetary union with 19 national financial systems, which differ in various ways, it is important not to favour certain financial instruments over other forms of financing. Any type of privileged treatment would increase national differences in the transmission of our single monetary policy.