Copublished with Positive Money Europe, Unlock & Ekō
Paris, 20 June – Activists and organizations in France, Belgium and Portugal are today staging an action near their central banks to demand lower interest rates for energy renovation loans. (1). Building renovation to improve energy efficiency is essential to meet climate goals and protect European households from extreme weather and energy price surges (2). Activists and NGOS, are calling on the Eurosystem central banks to set up a green lending facility to support it.
Organizations involved in the in-person action Unlock / Positive Money Europe, Rise for Climate Belgium, Grands-Parents pour le Climat / Grootouders voorj het klimaat, FairFin, Attac Bruxelles2 (Belgium); Fridays for Future Paris, Alternatiba Paris, Dernière Rénovation, Unlock France (France); Zero, (Portugal).
Online in Germany: KoalaKollektiv, and Spain: Amigos de la Tierra Madrid [Friends of the Earth], ASUFIN and Revo.
Today, activists and organizations took to the streets of Brussels, Paris and Lisbon to highlight the Eurosystem central banks’ responsibility to protect them from extreme temperatures and to contribute to the climate fight. They were joined by other organizations and groups online, including in Germany and Spain. This coordinated action, the first of its kind to target national central banks, took place only a few days after the latest ECB interest rates raise and a week before the ECB Forum on Central Banking.
“We’re burning, we’re freezing, the planet is on fire – what are you waiting for? Renovate our homes” : This was the demand, written on the emergency blankets brandished by activists near the Banco de Portugal and Banque Nationale de Belgique, while in Paris groups were blocked from reaching the Banque de France. The blankets were chosen to reflect people’s experience in recent years of suffering from heatwaves and struggling to cope with the cold as energy prices surged. Citizens from across different countries were also invited to take action online to put pressure on their national central bank.
The activists and organizations call on central bankers to take responsibility to make building renovation more affordable by lowering interest rates for banks lending money for renovation (3). Indeed, building renovations are crucial to decrease energy consumption and meet European Union (EU) climate goals, as buildings are responsible for 40% of EU energy consumption and 36% of carbon emissions (4). Furthermore, energy efficient building improvements will also help fight inflation as the excess energy-consumption in poorly insulated buildings inflates energy bills.
However, the European Central Bank (ECB) has so far refused to implement dual rates to ensure cheap loans for building renovation for energy efficiency. Without such a mechanism, decisions to increase interest rates render investments in building renovations more expensive, potentially putting the ECB at odds with EU climate goals. Indeed, building renovations are currently too slow and inefficient (5), partly because of the cost of extensive renovations which includes the interest rate of renovation loans, according to a 2022 survey (6).
Activists and organizations call all EU institutions, including national central banks, to address this and make renovation affordable with dual rates at the ECB level. This call is supported by a petition signed by 35,000 Europeans to unlock funds for building renovation (7).
The European Central Bank needs to do more for the environment, commitments and promises are not enough! It’s time for the ECB to take a proactive approach and adopt differentiated lower rates for particular types of investments, such as energy efficient home renovations. Imported fossil energy already exacerbated inflationary pressure in the past years. With differentiated rates, the ECB can help households reduce their consumption of fossil energy and thus reduce the economy’s exposure to energy price shocks, which will be key to ensure price stability in the long run. The Unlock campaign shows that there is popular support behind these demands: it’s time to act for the sake of people and the planet.
Serena Di Luccio, campaigner at Positive Money Europe and coordinator of the Unlock campaign
The call for action is supported by Reclaim Finance, a partner in the Unlock coalition.
Today’s call for action is a timely reminder that the ECB is failing Europe’s citizens who need access to affordable loans to make their homes more energy efficient. Rate rises are adding to the costs of essential energy efficiency improvements, but the ECB could temper this by introducing dual rates. It has been done before and could help Europeans access affordable loans to make their homes energy efficient. Central banks should play their part in addressing the climate challenge.
Clarisse Murphy, Central Banks campaigner at Reclaim Finance
Access the images of the action here.
