MPs Push Bank of England to Step Up Green Standards in Bond Purchases

MPs Push Bank of England to Step Up Green Standards in Bond Purchases

By Camilla Hodgson
January 24, 2021, Financial Times

MPs have urged the Bank of England to start aligning its corporate bond portfolio with the international climate agreement before November’s COP26 summit, describing the central bank’s purchase of high-carbon assets as a “moral hazard”. 

Members of the Environmental Audit Committee wrote to Andrew Bailey, governor of the BoE, on Friday, demanding the central bank show “leadership” on climate change by taking swift action to ensure all its corporate bond-buying programs — including Coronavirus pandemic support measures — were aligned with the goals of the Paris agreement.

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