NGOs 350.org, SumOfUs, Reclaim Finance in addition to Greenpeace have written to the European Central Financial institution (ECB) to demand that it stops supporting fossil gasoline firms as a part of its creating response to COVID-19. The letter comes three weeks forward of the ECB governing council assembly of 10 December, the place governors are anticipated to ramp up the Financial institution’s financial stimulus measures.
350.org campaigner Nick Bryer mentioned: “It’s ridiculous that the European Central Financial institution talks about tackling the local weather disaster, whereas supporting a few of the world’s worst polluters. With its present €1.47 trillion COVID-related asset buy programme, the Financial institution could have already pumped as much as €220 billion into high-carbon emitters like Shell and Complete. And on the tenth of December the financial institution would possibly double-down and channel billions extra euros in direction of fossil gasoline firms – until they take deliberate steps to exclude them”
ECB President Christine Lagarde (pictured) has promised to “discover each avenue” within the battle towards local weather change, together with contemplating utilizing the Financial institution’s €2.8tn asset buy schemes to pursue inexperienced goals. But, in December, the central financial institution is prone to go for further asset purchases with no inexperienced strings hooked up.
Reclaim Finance campaigner Paul Schreiber mentioned: “Subsequent month’s assembly will show whether or not or not the ECB is actually dedicated to integrating local weather into its operation. The central financial institution can’t be credible if it continues to help fossil gasoline firms, that don’t have any intention to respect the Paris-Settlement and aggressively plan to develop new fossil gasoline tasks.”
The open letter – additionally signed by Optimistic Cash Europe, New Economics Basis, Oil Change Worldwide and others – requires the ECB to take two quick steps according to its commitments and whereas ready for the outcomes of its technique evaluate:
1) Exclude fossil gasoline firms from company asset purchases, and
2) Pilot a inexperienced focused long-term refinancing operations (TLTRO) programme to incentivize personal banks to lend more cash for inexperienced investments.
SumOfUs campaigner Leyla Larbi mentioned: “Funding a “inexperienced” restoration and in addition funding essentially the most climate-destructive firms round is not sensible in any respect. The European Fee’s Inexperienced Deal motion plan is clearly being undermined by its personal Central Financial institution, and that’s why greater than 166,000 individuals throughout Europe are petitioning the ECB to vary. The ECB can finish all help to fossil gasoline firms and help inexperienced investments with a inexperienced TLTRO programme.”
The letter echoes the voice of greater than 160,000 folks that signed a petition calling on the ECB to cease supporting polluters by its financial coverage.
- The open letter is accessible right here.
- Reclaim Finance’s report on the ECB’s ongoing help to the fossil gasoline trade accessible right here. A selected temporary on fuel growth is accessible right here.
- NEF and Greenpeace’s report on the ECB’s asset purchases and their carbon bias is accessible right here.
- Optimistic Cash Europe and the Sustainable Finance Lab’s report on Inexperienced TLTRO is accessible right here.
- Final month the KoalaKollektiv, a Frankfurt-based local weather justice group, held a protest exterior the ECB. Photographs and movies can be found right here.