Recital 2

(2)In May 2024, the Governing Council decided to set an interim emissions reduction target for the aggregate Eurosystem corporate bond portfolios held under the CSPP and the PEPP. Reducing the emissions of its corporate bond holdings is intended to manage the Eurosystem’s exposure to climate-related financial risks and to steer the holdings in line with a path that supports the general economic policies in the Union as reflected in Regulation (EU) 2021/1119 of the European Parliament and of the Council ⁴ (the ‘European Climate Law’), which sets out a binding objective of climate neutrality in the Union by 2050 in pursuit of the long-term temperature goal set out in the Paris Agreement ⁵ . The interim emissions reduction target is designed to have a neutral effect on the monetary policy stance on overall financing conditions and is equally conducive and not prejudicial to price stability.