Belgium joins The Coalition of Finance Ministers for Climate Action
In the context of continuing efforts to recover from the COVID-19 pandemic, momentum is growing for action on climate change. Therefore, Belgium recently joined the Coalition of Finance Ministers for Climate Action.
The Coalition of Finance Ministers for Climate Action seeks to facilitate stepped-up engagement of Ministries of Finance and the deployment of policy instruments in their purview to accelerate the transition to low carbon economies while supporting sustainable and inclusive growth.
The world is undertaking a journey towards a global climate-neutral economy by the middle of this century, as agreed upon in the Paris (Climate) Agreement. As Ministers of Finance, using the tools we have at our disposal, we play an imperative role to ensure that financial flows aid this transition.
To achieve carbon-neutrality by mid-century, we must act now: financial institutions have to align their portfolios with the Paris Agreement, multilateral development banks must do more to integrate climate, environmental and social considerations into their investment decisions. And governments have to provide clarity by ensuring the rules we have put in place are stable, predictable and ambitious.
At the same time, we have to make sure the transition is just and fair: surely, we'll face some hard choices in the years ahead, but we must be vigilant on not leaving anyone behind.
I strongly believe economic resilience goes hand in hand with a low-carbon future, and that taxation is a powerful lever for sustainability.
- As governments, we must rebuild better, and rebuild more sustainably. The choices we make in our recovery plans, will shape the way our economies and societies will evolve over the long term. That’s why I will launch a Belgian transformation fund. That fund will inject both public and private funds into Belgian companies that guaranty to have a positive impact on the transition towards a sustainable economy.
- But there is no such thing as a sustainable economy without sustainable mobility. Therefore, Belgium will invest in a network of charging stations for electric cars. We will also explore which possible tax incentives we can provide to take our citizens along in this transition.
- A big challenge, but one with great efficiency towards climate neutrality, is making our homes climate compatible. To stimulate this, we decreased the VAT rate for the demolition and reconstruction of properties.
Climate change needs a global response, and the Coalition unites Ministries of Finance from across the world, to learn, exchange experiences and ideas, and to inspire each other. It shows ambition and Belgium will prove to be a strong, studious and reliable partner in the coming months and years.