The SIU is not a solution to fund EU priorities but a threat to climate mitigation

The Savings and Investment Union (SIU) aims to bridge the gap between household savings and productive investments to address an annual financing gap of €750–800 billion by 2030. However, the author contends that the SIU lacks mechanisms to channel funds specifically toward EU priorities or the ecological transition, meaning it could facilitate lending to heavily polluting activities. The document highlights that the initiative is likely to benefit highly concentrated asset management firms, particularly US-based BlackRock and Vanguard, which are identified as major investors in fossil fuel bonds and supporters of fossil fuel company governance.

• The Savings and Investment Union (SIU) is designed to unify EU financial markets to address an estimated annual financing gap of €750–800 billion by 2030 for innovation, climate transition projects, SMEs, and strategic EU goals.
• The SIU lacks specific measures to ensure funds are directed toward EU priorities or the ecological transition, creating a risk that it will finance activities not aligned with these goals, including heavily polluting sectors.
• The initiative is expected to primarily benefit large, concentrated asset managers, especially US firms like BlackRock and Vanguard, which may lead to a further shift in UCITS funds from EU company shares to US shares.
• Major asset managers poised to benefit from the SIU have significant fossil fuel exposures; between January 1, 2024, and June 30, 2025, 30 major European and US managers held at least $16.9 billion in bonds from the largest fossil fuel developers, with Vanguard ($4.2 billion) and BlackRock ($2.9 billion) as the largest investors.
• Large asset managers frequently support the governance of fossil fuel companies, voting in favor of 81% of director re-elections and board discharges and 69% of remuneration-related resolutions.

APA

Manickawasagar, A. (2026). The SIU is not a solution to fund EU priorities but a threat to climate mitigation. Reclaim Finance. https://reclaimfinance.org/site/en/2026/01/23/the-siu-is-not-a-solution-to-fund-eu-priorities-but-a-threat-to-climate-mitigation/

Chicago

Manickawasagar, Aatiraï. The SIU is not a solution to fund EU priorities but a threat to climate mitigation. Reclaim Finance, 2026. https://reclaimfinance.org/site/en/2026/01/23/the-siu-is-not-a-solution-to-fund-eu-priorities-but-a-threat-to-climate-mitigation/.

Wikipedia

{{cite press release |last1=Manickawasagar |first1=Aatiraï |title=The SIU is not a solution to fund EU priorities but a threat to climate mitigation |publisher=Reclaim Finance |date=23 January 2026 |url=https://reclaimfinance.org/site/en/2026/01/23/the-siu-is-not-a-solution-to-fund-eu-priorities-but-a-threat-to-climate-mitigation/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{manickawasagar2026siu, author = {Manickawasagar, Aatiraï}, title = {{The SIU is not a solution to fund EU priorities but a threat to climate mitigation}}, publisher = {Reclaim Finance}, year = {2026}, month = jan, url = {https://reclaimfinance.org/site/en/2026/01/23/the-siu-is-not-a-solution-to-fund-eu-priorities-but-a-threat-to-climate-mitigation/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }