First Green Quantitative Easing Of A Central Bank Fails To Work As Planned | Jan 7, 2022 at 12:30 PM
  • The Bank of England, which became in November 2021 the first central bank to adopt green criteria when buying corporate bonds under quantitative easing programs, is way off its targets to reduce the carbon intensity of its corporate bond-buying portfolio, a new study shows.
  • A study published on Friday by SOAS University of London found that the Bank of England’s so-called tilting approach will not significantly reduce the Weighted Average Carbon Intensity (WACI) of the CBPS portfolio.
  • “the approach that the Bank has taken to green the CBPS lacks ambition,” and the bank continues to be committed to the principle of ‘market neutrality’, despite having recognized its inherent carbon bias.