Kuroda Says BOJ Carefully Mulling Involvement on Climate Change
Kuroda Says BOJ Carefully Mulling Involvement on Climate Change
(Bloomberg) -- Governor Haruhiko Kuroda said the Bank of Japan is still carefully considering how it should engage in addressing climate change while keeping a careful eye on its impact on businesses.
“Whether we are involved in climate change policy itself or not is a bit different” to other issues the BOJ has dealt with, Kuroda said at a virtual Institute of International Finance annual membership meeting Monday.
Kuroda indicated that it’s unlikely the BOJ will start buying green bonds in the near future because it needs more time to consider the appropriate role for a central bank in the fight against climate change.
At the same time, it’s very important to watch the impact of climate developments on corporate profits and the viability of firms as it could affect the financial system, he said.
Kuroda’s remarks come as the debate continues in Europe over how much central banks should get involved in tackling the issue. Despite interest from European Central Bank President Christine Lagarde, a push for a green lending program to help the fight against climate change has run into skepticism.
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