How Ready Are Belgian Banks for the Climate Transition?

Insights from Climact’s Study for SPF Health & Environment

The financial sector plays a crucial role in accelerating the transition toward a low-carbon and resilient economy. To better understand how Belgian banks are preparing for this challenge, SPF Health and Environment / FOD Leefmilieu commissioned Climact to conduct a stocktake of the climate transition plans of Belgian banks.

Our analysis, based on both public disclosures and in-depth interviews with the sustainability teams of participating banks, provides the first overview of the sector’s readiness to align with the transition to a net-zero economy.

What Did We Learn?

Overall, the study paints a positive picture of ambition and engagement. Most Belgian banks view the climate transition not as a burden, but as a strategic opportunity—to support their clients on their decarbonisation journey and to invest in the assets of the future. By doing so, banks aim to reduce the risk of stranded assets while creating new financing opportunities.

In a global context where some major sustainability alliances are facing challenges—such as the recent turbulence around the Net-Zero Banking Alliance—this commitment from Belgian banks sends a strong and encouraging signal. Banks in Belgium are positioning themselves as partners in the decarbonisation of their clients’ activities, whether those clients are large industrial players, SMEs, or individual homeowners.

This willingness is reflected in a wide array of actions:

• Incentives and engagement, including the development of green financial products and proactive client dialogues.

• Restrictive measures, such as exclusion policies for high-emission activities.

However, the study also identifies gaps in target setting. Only 68% of banks have defined some type of near-term target, and just 38% have formally committed to being net-zero by 2050.
This hesitation stems in part from the uncertainty around Belgian and European climate ambition, which complicates long-term planning and risk assessment.

What Needs to Happen Next?

For banks to scale up their climate action and financing capacity, policy consistency and clarity are essential. Climact’s study highlights several areas where policymakers can help accelerate progress:

• Ensure policy coherence across all levels of government, so that there is a clear economic case for households and SMEs to invest in energy efficiency and electrification—unlocking opportunities for green financing.

• Enable data-driven action, by providing banks with access to EPC databases (while respecting privacy) to better target renovation and energy efficiency financing.

• Strengthen national climate planning, ensuring that the next National Energy and Climate Plan (NECP) offers transparent and actionable sectoral pathways that banks can use to benchmark their clients and portfolios.

• Clarify the regulatory landscape, notably through the ongoing revision of the Sustainable Finance Disclosure Regulation (SFDR), to make it easier and less burdensome for financial institutions to channel capital toward sustainable and impactful projects.

Belgian banks have a catalyst role to play in financing the transition to a resilient economy. This requires sustained action, engagement, and transparent target setting to signal commitment and credibility.

What Should Companies Take Away?

If your company aims to benefit from the growing range of sustainable finance opportunities, preparation is key. Banks are increasingly ready to support businesses in their decarbonisation journeys, but they expect clients to come prepared with a credible climate strategy.

To make the most of these opportunities, companies should have:

• A robust carbon footprint, identifying key emission sources.

• A clear decarbonisation roadmap, with identified levers and investment needs.

• Science-aligned climate targets, preferably consistent with a 1.5°C pathway.

At Climact, we help companies set up these foundations—so that you can engage confidently with your bank, access preferential green financing, and prepare for sustainability disclosure through platforms like Kube ESG.