The Bank of England says it will make its $28 billion corporate bond-buying scheme greener – as climate change moves up the agenda

The Bank of England says it will make its $28 billion corporate bond-buying scheme greener – as climate change moves up the agenda

The Bank of England has said it plans to make its £20 billion ($28 billion) corporate bond-buying program greener after the UK government told it to start taking climate change into account.

UK chancellor Rishi Sunak on Wednesday changed theBank of England's "remit", saying it should now focus on ensuring "sustainable and balanced growth that is also environmentally sustainable and consistent with the transition to a net-zero economy."

After the chancellor's letter, the BoE said it would give more information on its "approach to adjusting the Corporate Bond Purchase Scheme to account for the climate impact" over the coming months.

Britain's central bankestimated in 2020 that its bond portfolio is aligned with a 3.5C (6.8F) rise in temperatures above pre-industrial levels, clashing with the objectives of theParis climate agreement.

Climate campaigners have criticized the Bank for giving money to big polluters such as oil majors BP and Shell through the scheme, which buys up companies' bonds as a way of putting cash into and supporting the economy.

BoE governor Andrew Bailey said in February that the Bank was already working on how it would create a corporate bond portfolio that is "climate-adjusted."

The governor said in October that the Bank wants its bond-buying to remain as