Belgium’s central bank will face legal action over exposure to carbon-intensive assets in its quantitative easing (QE) programme, in a move that has been welcomed by economists.
Law firm ClientEarth has announced landmark legal action against the Belgian National Bank for “failing to fulfil environmental protection and human rights requirements when purchasing corporate assets, many of which are from companies that are fuelling the climate crisis”.
Since 2016, the central banks of Belgium, Germany, France, Spain, Italy and Finland have been part of the European Central Bank’s (ECB) Corporate Sector Purchase Programme (CSPP) to improve financing conditions for Eurozone businesses.
The Belgian National Bank has been responsible for purchases from companies across the greatest number of Eurozone countries, holding 426 of the 1,642 bonds under the programme - including from oil companies Shell, Eni and Schlumberger.
According to ClientEarth,…