ECB climate policies to change firms’ behaviour, says Natixis

“The ECB decisions mark a turning point as it could provide an unprecedented impetus to the transition towards a low-carbon economy,” said Myriam Azzouz and Cédric Merle, part of the bank’s green and sustainable hub. Picture: Alex Kraus/Bloomberg

The European Central Bank’s “trailblazing” climate debt policies could push companies to change their environmental behaviour as borrowing becomes more expensive, according to the investment-banking arm of Natixis SA.

The ECB plans to rejig its corporate bond portfolio to favour issuers that pollute less. The timing of the shift, when the central bank is also raising interest rates for its first time in over a decade, makes it “particularly groundbreaking,” according to a team of analysts.