Interim emissions reduction target framework
Article 4b
1. The Eurosystem shall assess on an annual basis whether the weighted average of self-reported scope 1 and scope 2 greenhouse gas emissions intensity of the Eurosystem’s CSPP and PEPP aggregate holdings of corporate bonds has declined by at least 7 % on average per annum since the base year. This average interim target rate of decline shall be calculated geometrically from the level of the abovementioned metric at the end of 2021, also taking into account the impact of inflation over time on such weighted average greenhouse gas emissions intensity. 2. If the weighted average greenhouse gas emissions intensity of the Eurosystem’s CSPP and PEPP aggregate holdings of corporate bonds, as measured for the calendar year with the latest representative emissions data across bond holdings, exceeds the interim target stipulated in paragraph 1, the Governing Council shall decide whether actions to adjust the weighted average greenhouse gas emissions intensity of the Eurosystem’s CSPP holdings are warranted. Such a decision shall be taken with due consideration to the drivers and effects of the deviation from the interim target set out in paragraph 1 and the proportionality and absence of prejudice to the objective of price stability of any remedial actions. 3. The Governing Council may, when it considers it necessary to do so, review the interim emissions reduction target framework to reflect the increasing availability of climate data and models, as well as relevant regulatory developments and advancement in risk assessment capabilities.