The European Central Bank is still e-printing €60bn a month under its QE programme and is committed to doing so until September 2016. In our “Climate QE” paper we propose that to address the challenge of the kind posed by India’s prime minister the ECB should allocate, say, €10bn a month from this QE programme. This could be used to buy climate change bonds from the European Investment Bank, which could then direct these funds to climate change programmes in developing countries. Such an approach could galvanise and put pressure on other rich countries to introduce their own climate QE initiatives.
QE is, by design, reversible.
What he is suggesting is not reversible. Therefore it’s not QE.