"This policy note suggests a way to integrate carbon emissions as a criterion in its own right, shaping central banks' investment decisions and the collateral framework used for refinancing purposes. As the ECB intends to maintain its balance sheet volume at its current level even after the Quantitative Easing officially ends, the most urgent decisions concern the reinvestment of revenues from programs such as the CSPP. We consider that the technical difficulties related to estimating carbon emissions for different financial assets are real but surmountable and should not justify inaction."

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