The European Central Bank and Green Interaction. The Role of Christine Lagarde

Exposé Écrit pour un Séminaire / Cours , 2020 , 41 Pages , Note: 1,3

Economie politique - Relations économiques Internationales

This paper discusses the question, how Christine Lagarde wants to reorient the ECB's strategy and find answers to how the European Central Bank (ECB) could react to future developments such as climate change and if that is possible.

In 2015, 190 parties have committed themselves to the Paris Agreement. This agreement aims to limit global warming to well below 2 degrees. Climate change is one of the greatest challenges of our time and many nations have drawn up their own climate protection plans to limit their emissions. However, since climate change is a global challenge, international cooperation is more effective, if not necessary.

In December 2019, EU Commission President Ursula von der Leyen proved her commitment to environmental friendliness by announcing the European Green Deal in terms of which no more net greenhouse gas emissions are to be released in the EU by 2050. Von der Leyen is supported by the President of the European Central Bank (ECB) Christine Lagarde.
But does the ECB commit ultra vires in the process?

Table of Contents

A. Introduction: Are environmental considerations part of the ECB’s mandate?

B. Green interaction and price stability
I. Institutional ECB law
II. Economic theory behind price stability
III. Objectives of the ECB
1. Price stability, Art. 127 para. 1 sentence 1 TFEU
2. Support of general economic policy, Art. 127 para. 1 sentence 2 TFEU
a) Preliminaries
b) Distinction between monetary and economic policy
c) Application of the principle of proportionality
3. Principles underlying the objectives, Art. 127 para. 1 sentence 3 TFEU
4. Practical example
IV. Programmes of the ECB
1. Outright Monetary Transactions
2. Asset Purchase Programmes
a) Preliminaries
b) Risks of the APP
c) APPs in operation
V. Areas of green interaction to be conducted by the ECB
1. Preliminaries
2. Advisory powers, Art. 4 and 6 ECB Statute
3. Financial stability and prudential supervision
4. Purchase of green bonds
a) Purchase of green bonds within existing APPs
b) New Green Bond Purchase Programme
5. Green money printing
6. Excursus: Regulation (EU) 2020/852 - Taxonomy
VI. Comparison with other central banks
1. Preliminaries
2. Bank of England
3. The People’s Bank of China

C. Conclusion: Christine Lagarde intra vires!

• Université: Carl von Ossietzky University of Oldenburg
• Note: 1,3
• Auteurs: Hanif Rahimy (Auteur), Christian Daniel Hein (Auteur)
• Année de publication: 2020
• Pages: 41
• N° de catalogue: V1011962
• ISBN (ebook): 9783346410504
• ISBN (Livre): 9783346410511
• Langue: anglais
• mots-clé: EZB, Geldpolitik, Klimaschutz, climate change, green monetary policy, European Grenn Deal, Christine Lagarde