“Decarbonization” Added to the Mission of the Bank of England Announced by the Minister of Financeb
UK Treasury Minister Snak announced on the 3rd that the Bank of England (Central Bank)’s monetary policy management mission will include a shift to a “substantially zero” society of global warming gas emissions. Along with the inflation target of 2% the central bank responsible for monetary policy and supervision will clarify its responsibility to actively deal with climate change issues.
The world’s central banks have stepped up their response to financial risks associated with global warming and the transition to a low-carbon society. However, the UK is the first major central bank to specifically include decarbonization as a policy management responsibility.
In a budget speech to the House of Representatives, Mr. Snak reaffirmed the government’s designated monetary policy mission of “(price increase rate) of 2%, but in the future, the importance of environmental sustainability and the transition to net zero. Will also be reflected. ”
The British government has launched a series of related policies under the statutory goal of reducing global warming gas emissions to virtually zero by 2050. It plans to ban new sales of gasoline and diesel vehicles by 30 years, and officially announced a plan to issue environmental bonds for individuals on the 3rd. He called on monetary policy to keep pace with these government moves, notifying him in a letter to Governor Bailey.
The Bank of England said it would “welcome” and said it would provide information within a few months to review the purchase of corporate bonds it is implementing as a monetary easing measure. When selecting the purchase target, it is expected that the climate change risk and response attitude of the company will be taken into consideration. A clear greening of central bank assets is likely to have a major impact on the flow of investment money.