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Environmentalists press Bank of Canada to be more active on climate change

OTTAWA — Environmentalists are pressing Canada’s central bank to become more forceful in driving financing towards green investments, including actively buying a proposed federal tool to fund the transition to a low-carbon economy.

The bank is working on issuing a federal green bond the Trudeau Liberals proposed in last month’s budget, which governor Tiff Macklem has suggested could become part of the bank’s purchases under certain conditions.

Alex Speers-Roesch with Greenpeace says the central bank should more actively intervene in markets to drive investments where they are needed, noting a similar suggestion from the Dutch central bank in recent days.

That activity would include purchasing things like green bonds.

Greenpeace is asking that the Bank of Canada’s mandate include addressing climate change when it agrees on its new marching orders with the federal government later this year.

Speers-Roesch points to that agreement as a way for the bank to maintain independence from political interference by letting the Bank of Canada decide on specific climate-related actions.

This report by The Canadian Press was first published May 21, 2021.

The Canadian Press