European Parliament Questions ECB’s Environmental Standards and Cryptocurrency Regulation
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European Parliament Questions ECB’s Environmental Standards and Cryptocurrency Regulation

European parliamentarians have urged the central bank of the eurozone to enhance its commitment to sustainability while addressing the challenges posed by advancing financial technologies.

In a resolution approved by a significant majority, Members of the European Parliament (MEPs) called on policymakers at the European Central Bank (ECB) to more effectively incorporate environmental, social, and governance (ESG) criteria into their operations. They emphasized the need for a redesign of the Corporate Sector Purchase Programme (CSPP) to more actively support environmentally friendly initiatives.

MEPs expressed concern that the issuance of green bonds currently constitutes only 1% of the total euro-denominated bond market, while 62.1% of ECB’s corporate bond acquisitions are concentrated in sectors that contribute to 58.5% of greenhouse gas emissions in the euro area.

The resolution also highlighted the necessity for the ECB to intensify efforts against money laundering, tax evasion, and other financial crimes, advocating for a comprehensive system to monitor substantial transactions more effectively.

Additionally, the MEPs underscored the importance of increased scrutiny over crypto-assets. The resolution states that “the ECB, in collaboration with the Commission, should evaluate the EU’s legal and regulatory framework concerning e-money, financial instruments, and virtual currencies/assets.”