ECB sets stricter climate targets for portfolio

The European Central Bank (ECB) on Tuesday said it would introduce greenhouse gas emissions reduction targets for its corporate bond portfolio and may even sell some assets if it fails to meet its goals. 

The ECB holds about 350 billion euros ($376 billion) in corporate debt, which it purchased as part of a stimulus scheme over the past decade. In recent years, it has been pushing companies in this portfolio to adopt greener policies. However, the slowing and imminent halt of reinvestments in its (nearly defunct) Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP) has forced the bank to find a new route to encourage corporate participation.