European Parliament challenges ECB on green credentials and crypto regulation

European parliamentarians have called on the zone's central bank to step up its green credentials and address growing financial technology challenges.

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European Parliament challenges ECB on green credentials and crypto regulation

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Ina resolution passed by a clear majority, MEPs challenged policy makers at the European Central Bank to better integrate environmental, social and governance (ESG) principles into its activities and to redesign its corporate sector purchase programme (CSPP) to better support environmentally sustainable initiatives.

MEPs deplored that green bond issuance still accounts for only one percent of the overall supply of euro-denominated bonds, while a majority (62.1%) of ECB corporate bond purchases remain in sectors that are responsible for 58.5% of euro area greenhouse gas emissions.

The resolution also demanded that the ECB step up its efforts to combat money laundering, tax evasion and other forms of financial crimes, by creating a system to better monitor large transactions.

MEPs also noted the need to monitor crypto-assets more closely.

States the resolution: "In collaboration with the Commission, the ECB should assess the EU legal and regulatory framework on e-money, financial instruments and virtual currencies/assets."

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