The ECB’s Monetary Policy Strategy Review: corporate sector asset purchases, climate change and the ECB’s legal obligations

ClientEarth argues that the ECB's Corporate Sector Purchase Programme (CSPP) and Pandemic Emergency Purchase Programme (PEPP) exhibit a structural bias toward greenhouse gas-intensive companies, which undermines EU climate targets and increases systemic financial risk. The organization asserts that the ECB has legal obligations under EU treaties and the Charter of Fundamental Rights to integrate environmental protection into its monetary policy. ClientEarth proposes three specific actions: the immediate exclusion of bonds from companies incompatible with Paris Goals (including coal and unconventional oil and gas), requiring companies to adopt credible net-zero transition strategies by January 2023, and implementing annual TCFD-aligned reporting starting in 2022. The letter challenges the ECB's 'market neutral' approach, claiming it locks in high-carbon business models and fails to account for climate-related financial risks.

• The ECB's corporate asset purchase programmes, specifically the CSPP and PEPP, are biased toward greenhouse gas-intensive sectors, with more than half of purchased assets issued by such sectors.
• The ECB's 'market neutral' approach to asset purchases is criticized for reproducing the high-carbon status quo and providing liquidity to companies not aligned with the Paris Goals, thereby exacerbating systemic risks to the global financial system.
• ClientEarth argues the ECB is legally required to mitigate climate-related risks and support EU environmental objectives, citing that a stable climate is a prerequisite for the ECB to maintain its price stability mandate.
• The ECB is urged to establish a comprehensive strategy to align its portfolios with EU emissions targets and publish annual reports following the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations starting in 2022.

APA

ClientEarth (2021). The ECB’s Monetary Policy Strategy Review: corporate sector asset purchases, climate change and the ECB’s legal obligations. https://www.clientearth.org/media/jtxnhiba/2021-04-12-letter-from-clientearth-to-christine-lagarde.pdf

Chicago

ClientEarth. The ECB’s Monetary Policy Strategy Review: corporate sector asset purchases, climate change and the ECB’s legal obligations. 2021. https://www.clientearth.org/media/jtxnhiba/2021-04-12-letter-from-clientearth-to-christine-lagarde.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=The ECB’s Monetary Policy Strategy Review: corporate sector asset purchases, climate change and the ECB’s legal obligations |date=12 April 2021 |url=https://www.clientearth.org/media/jtxnhiba/2021-04-12-letter-from-clientearth-to-christine-lagarde.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2021ecbs, author = {{ClientEarth}}, title = {{The ECB’s Monetary Policy Strategy Review: corporate sector asset purchases, climate change and the ECB’s legal obligations}}, publisher = {ClientEarth}, year = {2021}, month = apr, url = {https://www.clientearth.org/media/jtxnhiba/2021-04-12-letter-from-clientearth-to-christine-lagarde.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }