Volker Wieland is skeptical about the ECB's role in climate protection ("Handelsblatt")

Prof. Volker Wieland is skeptical about the European Central Bank's (ECB) ability to fight climate change. "Neither monetary policy nor financial market regulation can stop climate change. The decisive factor is to ultimately limit greenhouse gas emissions worldwide through an emissions budget," he said in a "Handelsblatt" discussion with Greenpeace expert Mauricio Vargas.

A price for emissions arises from the emission budget. "The most important role of the ECB would be to advocate this need and to make clear that monetary policy cannot make an important contribution [to the fight against climate change]." The ECB has only one policy tool: the short-term central bank interest rate or the central bank balance sheet, Wieland continued.

Handelsblatt Debate on the Role of the ECB: "Geldpolitik bringt fürs Klimaziel nichts" - "Doch, die Anreize wirken" (€)