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11/21, 11:01 AM (Source: TeleTrader)
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Moving to green economy risks manipulation - ECB's Mersch

Member of the European Central Bank's (ECB) Executive Board Yves Mersch warned on Saturday that moving towards a greener economy could lead to it converting into "a pure marketing tool" if the regulations the companies would need to operate under are not fully outlined and standardized.

Mersch added the ECB would dedicate its "stress test to the topic of climate change" and how transitioning to a greener economy would reflect on businesses and markets. "I don't think we can stop climate change by choking off entire sectors of the economy. We should rather create the right incentives through, say, fiscal policy measures, including carbon pricing and other regulatory tools," he added.

Mersch's comments come shortly after Bundesbank President Jens Weidmann asserted the ECB could put its independence at risk by actively participating in creating and implementing climate change policies.

Breaking the News / JR