Bank for International Settlements Gets Big ECB Mandate on Green Bonds
Posted on 01/25/2021
The European Central Bank (ECB) has decided to use part of its own funds portfolio to invest in the euro-denominated green bond investment fund for central banks (EUR BISIP G2) introduced by the Bank for International Settlements (BIS). With this investment, the ECB contributes, within its mandate, to global efforts to promote environmental objectives – including the EU climate goals – and to combat climate change. The BIS green bond fund invests in renewable energy production, energy efficiency, and other environmentally friendly projects.
This investment in the EUR BISIP G2 is part of the ECB’s sustainable and responsible investment (SRI) strategy that targets an increase in the share of green securities in its own funds portfolio. Such investment complements direct purchases of green bonds in secondary markets. The ECB already holds green bonds amounting to 3.5% of its own funds po