CO2 indexed monetary policy

By Dirk Schoenmaker, Professor of Banking and Finance at the Rotterdam School of Management, Erasmus University Rotterdam. Originally published at VoxEUCentral banks traditionally take a long-term perspective on economic and financial developments. Through monetary policy they play an important role in the economy, and their mandate to ensure financial stability means they have an important role in the financial system too.As part of this commitment, central banks have begun to examine the impact of climate-related risks on the stability of the financial system (Carney 2015). In monetary interventions, central banks have a long-standing policy of market neutrality, but there is evidence that the market has a bias towards carbon-intensive companies, and so monetary policy cannot be climate neutral (Matikainen et al. 2017). Doing nothing to meet this challenge is a decision that undermines the general policy of the EU to achieve a low-carbon economy.

The central bank would collect CO2 tort costs, a horrid idea if ever there was one. 

The point is misses, obviously, we cannot even measure CO2 damages unless the central bank put up a neutral price measure.

This is crap from Naked Capitalism, that group is still floundering around in their New Green religion.  The CO2 liabilities are exposed on the balance sheet in the Tort Green system, no one can avoid them and no government agency, including the central bank, can fake it. True Green,  I call it, Green Fakers out of the way please.