‘New ESM’ for climate could help euro bond market, Axa argues

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By Burhan Khadbai, Jon Hay
21 Nov 2019

Green finance specialists gave a cautious welcome this week to an idea put forward by Axa that the European Union should set up a new organ, modelled on the European Stability Mechanism, to borrow about €500bn for investments to fight climate change. Jon Hay and Burhan Khadbai report.

The proposal was made on Tuesday by Gilles Moëc, Axa’s chief economist, in a white paper published on the French insurer’s website.

A new European Climate Emergency Fund could have governance and a financial structure that echoed the ESM, he argued.

“Because the ESM exists and is ...

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