Green public finance: The role of central banks

Jörn Axel Kämmerer

Chapter 11 in Research Handbook on Environmental, Social and Corporate Governance, 2024, pp 249-267 from Edward Elgar Publishing

Abstract: In the wake of the Paris Agreement, various central banks have adopted measures that aim to decarbonize their own portfolios by means of prioritizing the purchase of ‘green bonds’. This programmatic element is novel in monetary policy, which traditionally has been market neutral. With a focus on the European Central Bank (ECB), which is developing its own ‘green’ purchase strategy, this chapter sets out the legal conflicts which arise between monetary policy goals and commitment to sustainability. As the ECB, an EU body, is subject to the principle of conferral, any conduct of a policy other than monetary and any unallowed pursuit of goals would qualify as ultra vires. Balancing the existing horizontal Treaty clause on sustainability that is also binding on the ECB, and its mission as fixed by primary law, we may hold that its monetary policy may at least take on a ‘green tinge’.

Keywords: Economics and Finance; Environment; Law - Academic; Politics and Public Policy (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781802202533.00021 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:21010_11

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().