Positive Money Europe calls on the National Bank of Belgium to defund fossil fuels

Positive Money Europe and Fairfin placed a wrecked car from the this summers floods in Belgium in front of the National Bank of Belgium (NBB) today (29 October). The organizations were calling out the continued use of bond purchases to support companies that have exacerbated climate change. 

Positive Money Europe says that since 2016, the Belgian National Bank has been massively purchasing bonds from the private sector under the framework of the Corporate Sector Purchase Programme (CSPP). A study by the New Economics Foundation found that most of the companies benefitting from the programme are part of the most polluting sectors, with high carbon-emission rates. For instance, the National Bank of Belgium is subsidising companies such as Shell, ArcelorMittal, Eni and the oilfield services company Schlumberger.

Vicky Van Eyck, campaign manager at Positive Money Europe, said: “Unlike other central banks across the Eurozone, the National Bank of Belgium led by Mr Wunsch remains one of the biggest laggards in terms of climate ambitions. By sticking to the sacrosanct market neutrality principle, the ECB, and the National Bank of Belgium, are ignoring the ECB’s secondary mandate which  involves supporting the EU in achieving its objectives, which includes climate objectives. 

“It is unacceptable to keep funding polluting companies with public money when climate change is already hitting us hard, as evidenced by the floods in Europe this summer. This is why we are joining the global mobilization today. In solidarity with activists and climate victims that are taking the streets in Europe and worldwide, we call on central bankers to stop the money pipeline that fuels climate chaos.”

Positive Money Europe says that already in October 2020 a joint letter was sent by 15 Belgian organisations to the governor of the National Bank, Pierre Wunsch, asking him to clarify the National Bank’s position on how it will ensure economic recovery while respecting the Paris Agreements. 

In April 2021, ClientEarth commenced legal proceedings in the Belgian courts asking it to order the National Bank to stop bond purchases under the CSPP that go against the EU’s legal obligations in terms of the environment and human rights. The next hearing before the President of the French-speaking Court of First Instance in Brussels is scheduled for 15 November.

Positive Money Europe will also be following the hearing closely and will ensure that citizens are aware of what is happening.

Together with Belgian partners, Positive Money Europe intends to further increase the pressure on the National Bank and the ECB by means of petitions.

Background

Positive Money Europe is a not-for-profit research and campaigning organization aiming to make the money system support a fair, democratic and sustainable economy. It scrutinizes the European Central Bank and develop policy proposals to reform the Eurozone monetary system.

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