EU elections: our four key proposals for private finance

Reclaim Finance argues that the EU's climate targets cannot be met without a massive mobilization of private finance, which currently favors fossil fuels over sustainable energy. The organization proposes four key interventions: mandating a 6:1 clean energy to fossil fuel investment ratio by 2030, requiring robust and audited climate transition plans, applying the "do not significantly harm" principle to all financial services, and implementing preferential ECB refinancing rates for sustainable activities.

• The EU requires significant additional annual investment to meet climate goals, with the European Commission estimating €620 billion and the European Court of Auditors suggesting €1000 billion. Between 80% and 85% of this transition funding must be sourced from the private sector.
• European banks are currently not aligned with climate goals, having invested over $767 billion USD in fossil fuels since 2015. The current average ratio of clean energy to fossil fuel financing for major EU banks is 1.6:1, whereas a ratio of 6:1 is needed by 2030 to limit global warming to 1.5°C.
• Current EU laws regarding climate transition plans lack standardization, binding implementation, and monitoring, which risks making them tools for greenwashing. Reclaim Finance advocates for specific audit procedures and dissuasive sanctions to ensure these plans are robust.
• To prevent the lock-in of emissions and manage climate-related risks, the "do not significantly harm" (DNSH) principle should be applied to all financial services to stop support for new harmful infrastructures.
• The European Central Bank (ECB) could accelerate the energy transition by offering lower refinancing rates to banks that finance sustainable activities, which would protect these projects from the impact of general rate hikes.

APA

Martin, L. (2023). EU elections: our four key proposals for private finance. Reclaim Finance. https://reclaimfinance.org/site/en/2023/08/30/eu-elections-our-four-key-proposals-for-private-finance/

Chicago

Martin, Léo. EU elections: our four key proposals for private finance. Reclaim Finance, 2023. https://reclaimfinance.org/site/en/2023/08/30/eu-elections-our-four-key-proposals-for-private-finance/.

Wikipedia

{{cite press release |last1=Martin |first1=Léo |title=EU elections: our four key proposals for private finance |publisher=Reclaim Finance |date=30 August 2023 |url=https://reclaimfinance.org/site/en/2023/08/30/eu-elections-our-four-key-proposals-for-private-finance/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martin2023elections, author = {Martin, Léo}, title = {{EU elections: our four key proposals for private finance}}, publisher = {Reclaim Finance}, year = {2023}, month = aug, url = {https://reclaimfinance.org/site/en/2023/08/30/eu-elections-our-four-key-proposals-for-private-finance/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }