NGOs call on the European Central Bank to stop funding fossil fuels

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NGOs, SumOfUs, Reclaim Finance in addition to Greenpeace have written to the European Central Bank (ECB) to demand that it stops supporting fossil gasoline firms as a part of its growing response to COVID-19. The letter comes three weeks forward of the ECB governing council assembly of 10 December,  the place governors are expected to ramp up the Financial institution’s financial stimulus measures. campaigner Nick Bryer stated: “It’s ridiculous that the European Central Financial institution talks about tackling the local weather disaster, whereas supporting a number of the world’s worst polluters. With its present €1.47 trillion COVID-related asset buy programme, the Financial institution might 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 “explore every avenue” within the struggle in opposition to local weather change, together with contemplating utilizing the Financial institution’s €2.8tn asset buy schemes to pursue inexperienced aims. But, in December, the central financial institution is more likely to go for extra asset purchases with no inexperienced strings connected.

Reclaim Finance campaigner Paul Schreiber stated: “Subsequent month’s assembly will reveal whether or not or not the ECB is really dedicated to integrating local weather into its operation. The central financial institution can’t be credible if it continues to assist fossil gasoline firms, that haven’t any intention to respect the Paris-Settlement and aggressively plan to develop new fossil gasoline tasks.”

The open letter – additionally signed by Constructive Cash Europe, New Economics Basis, Oil Change Worldwide and others – requires the ECB to take two instant steps according to its commitments and whereas ready for the outcomes of its technique evaluation:

1) Exclude fossil gasoline firms from company asset purchases, and

2) Pilot a inexperienced focused long-term refinancing operations (TLTRO) programme to incentivize non-public banks to lend extra money for inexperienced investments.

SumOfUs campaigner Leyla Larbi stated: “Funding a “inexperienced” restoration and in addition funding essentially the most climate-destructive firms round is mindless 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 folks throughout Europe are petitioning the ECB to alter. The ECB can finish all assist to fossil gasoline firms and assist inexperienced investments with a inexperienced TLTRO programme.”

The letter echoes the voice of greater than 160,000 those that signed a petition calling on the ECB to cease supporting polluters via its financial coverage.

  • The open letter is available here.
  • Reclaim Finance’s report on the ECB’s ongoing assist to the fossil gasoline business available here. A selected transient on gasoline growth is available here.
  • NEF and Greenpeace’s report on the ECB’s asset purchases and their carbon bias is available here.
  • Constructive Cash Europe and the Sustainable Finance Lab’s report on Inexperienced TLTRO is available here.
  • Final month the KoalaKollektiv, a Frankfurt-based local weather justice group, held a protest exterior the ECB. Photos and videos are available here.

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