ECB’s Lagarde will struggle to fulfill self-imposed climate mission

Financial Post | Dec 4, 2019 at 1:27 PM
  • Christine Lagarde has called the fight against climate change “mission critical” for the European Central Bank but she will struggle to match those words with actions during her eight years leading Europe’s most powerful financial institution.
  • Its narrowly defined mandate of fighting inflation will limit what Lagarde can actually do.
  • If credit rating agencies factored climate risk into their assessment, the ECB could differentiate between assets without giving up on market neutrality.