Category: Central banks

The European Central Bank will accept sustainability-linked bonds based on the EU taxonomy or the SDGs as central bank collateral, it has said. Notes with coupons tied to performance targets “referring to one or more of the environmental objectives set out in the EU Taxonomy Regulation and/or to one or more of the United Nations Sustainable Development Goals relating to climate change or environmental degradation” will be eligible as collateral for Eurosystem credit operations and outright purchases for monetary policy purposes, according to a statement. Bonds will have to comply with all other eligibility criteria too, it said, adding that the decision – which applies from January 2021 - “signals the Eurosystem’s support for innovation in the area of sustainable finance”. 

New York insurers will have to start integrating climate risk into their governance frameworks, risk management processes, and business strategies, according to the N…