Otmar Issing in this Proj Synd piece says there is no thing as Green monetary policy:
Although there is increasing support for the idea that central banks should actively contribute to the fight against climate change, monetary policymakers have no mandate to do so, and for good reason. Tackling climate change is – and must remain – the responsibility of elected governments and parliaments.
Further:
the growing public demand that central banks contribute more actively to the fight against climate change leads to a different dimension. In theory, central banks could introduce preferential interest rates for “green” activities – thus driving up the prices of “green bonds” – while adopting a more negative attitude toward noxious assets, such as those tied to fossil fuels. And yet, assessing whether and to what extent an asset is environmentally harmful or helpful would be extremely difficult.
Putting aside these more technical issues, the…
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