“Fed” Up with Carbon: Central Banks & Climate Change

Should the world's central banks (Fed, ECB, BoE...) launch a coordinated "green quantitative easing" programme to simply print the $3.5 trillion a year needed to finance the energy transition? Is this a realistic solution or too green to be true?This episode of the 2050 investors podcast puts the 'central' back in central banks. Since their creation in the 17th century, central banks have been tasked with managing monetary policy, overseeing the banking system and the core mandate of maintaining 'price stability'. But climate change is becoming a major threat to their mandate, posing a real risk to economic and financial stability in the medium to long term.In this latest episode, Kokou explores the delicate balancing act that central banks must perform as they seek to be independent in ensuring that inflation remains under control, while at the same time contributing to economic and financial stability and playing a central role in the fight against climate change. There is more to central banking than meets the eye.Don't worry if you've forgotten your Economics 101 course, or if you've never taken one, because we're going to give you a quick crash course in the complicated role of the central bank, using references from the series Money Heist (La Casa de Papel) and the wonderful and magical world of Lord of the Rings.And, of course, we take you down memory lane with a brief history of central banks and their evolution from World War I through 20th century Japan to the recent 'inflation outbreak' following the Covid19 pandemic.Later in the episode you will hear extracts from an episode of "The ECB Podcast" entitled "Tackling climate change as a central bank, between motivation, obligation and limitation". Isabel Schnabel and Frank Elderson, Executive Board members of the European Central Bank, explain the role of the ECB's Corporate Sector Purchase Programme (CSPP), which buys green bonds issued by companies in order to reduce their carbon footprint.About this showWelcome to 2050 Investors your monthly guide to understanding the intricate connections between finance, globalisation, and ESG. Join host Kokou Agbo-Bloua, Head of Economics, Cross-Asset & Quant Research at Societe Generale, for an exploration of the economic and market megatrends shaping the present and future, and how these trends might influence our progress to meeting 2050’s challenging global sustainability targets.In each episode, Kokou deep-dives into the events impacting the economy, financial markets, the planet, and society. Through a magical blend of personal anecdotes, in-depth research and narratives overlaid with music, sound effects, and pop culture references, there’s certainly something for everyone. Kokou also interviews industry-leading experts, personalities, entrepreneurs and even Nobel prize winners! You will learn from the best on a wide range of subjects on current affairs, market shifts, and economic developments. If you like 2050 Investors, please leave a five-star review on Apple Podcasts or Spotify. Your support will help us spread the word and reach new audiences. If you’re seeking a brief and entertaining overview of market-related topics and their business and societal implications, subscribe now to stay informed!Previous episodes of 2050 Investors have explored ESG-influenced financial assets, climate change, AI, greenflation, smart cities, globalization, plastic pollution, food, health care, biodiversity, the energy transition, and more. CreditsPresenter & Writer: Kokou Agbo-Bloua. Editors: Vincent Nickelsen, Jovaney Ashman, Linda Isker and Théodora David. Production Designer: Emmanuel Minelle, Radio K7 Creative. Executive Producer : Fanny Giniès. Sound Director: Marc Valenduc. Music: Rone. Graphic Design: Cédric Cazaly.Whilst the following podcast discusses the financial markets, it does not recommend any particular investment decision. If you are unsure of the merits of any investment decision, please seek professional advice.