Central Bank of Ireland to invest in second BIS green bond fund

• Investment in euro-denominated fund follows the Central Bank’s participation in the US dollar-denominated green bond fund earlier this year.
• The investment reflects the Central Bank’s commitment to embedding climate change considerations in its own operations and to addressing climate risk.
• Investment builds on the Central Bank’s recent pledge on climate change action and reflects significance of climate change in its new Strategy.

The Central Bank of Ireland has today (20 December 2021) announced its participation in the euro-denominated green bond investment fund for central banks established by the Bank for International Settlements (BIS). The investment follows the participation of the Central Bank in the BIS US dollar-denominated green bond investment fund in May 2021.

Addressing the risks of climate change and supporting the transition to a carbon-neutral economy forms a core aspect of the Central Bank’s recently published multi-year Strategy. The investment announced today builds on the Central Bank’s existing steps to embed climate change considerations in its own operations, which include the establishment of a dedicated Climate Change Unit and its membership of the Network for Greening the Financial System (NGFS).

In its recent pledge on climate action, the Central Bank underlined its commitment to redouble efforts to take action in respect of climate change and endorsed the NGFS Glasgow Declaration, which sets out a willingness to strengthen collective efforts towards greening the financial system.

Today’s announcement also aligns with the agreement in February 2021 on a common stance for Eurosystem central banks on climate change-related sustainable investments in non-monetary policy portfolios.

Notes to Editor

The Bank for International Settlements is an international organisation that supports central banks’ pursuit of monetary and financial stability through international cooperation, and acts as a bank for central banks.

Bonds eligible for the BIS green bond fund must have at least an “A-“ credit rating and comply with the Green Bond Principles of the International Capital Market Association and/or the Climate Bonds Standard published by Climate Bonds Initiative. The BIS green bond fund invests in renewable energy production, energy efficiency, and other environmentally-friendly projects.

The Network for Greening the Financial System is a group of central banks and supervisors that share experiences and best practices to contribute to the development of environment and climate risk management in the financial sector.