Integrating climate to the EU Commission securitization proposal

Reclaim Finance critiques the European Commission's June 2025 proposal to boost the EU securitization framework under the 'savings and investments union' (SIU) strategy. The organization argues that securitization plays a marginal role in financing the economy and, without strict requirements, may increase funding for fossil fuels and polluting activities while hiding ESG risks. Reclaim Finance proposes banning fossil fuel securitization, increasing transparency on harmful assets, and requiring ESG risk management guidelines.

• The European Commission's June 2025 proposal to revive the EU securitization framework aims to boost the market by removing barriers and easing prudential requirements, but Reclaim Finance argues it may contribute to funding polluting activities because it lacks requirements to ensure the mechanism supports sustainable activities.
• Securitization is expected to have a limited impact on meeting funding needs because only about 30% of traditional securitization volumes are placed on the market, suitable assets are limited, and it competes with other asset classes like covered bonds.
• Current securitization processes and supervision do not consider climate and ESG risks, which could allow the mechanism to be used to conceal these risks and increase the financing of fossil fuels.
• Reclaim Finance recommends four specific amendments to the proposal: banning fossil fuel securitization (or applying high-risk weights), providing transparency on harmful assets, requiring the securitization sub-committee to publish ESG risk management guidelines, and ensuring the directive's evaluation considers the role of securitization in the sustainable transition.

APA

Martin, L. (2025). Integrating climate to the EU Commission securitization proposal. Reclaim Finance. https://reclaimfinance.org/site/en/2025/08/27/integrating-climate-to-the-eu-commission-securitization-proposal/

Chicago

Martin, Léo. Integrating climate to the EU Commission securitization proposal. Reclaim Finance, 2025. https://reclaimfinance.org/site/en/2025/08/27/integrating-climate-to-the-eu-commission-securitization-proposal/.

Wikipedia

{{cite press release |last1=Martin |first1=Léo |title=Integrating climate to the EU Commission securitization proposal |publisher=Reclaim Finance |date=27 August 2025 |url=https://reclaimfinance.org/site/en/2025/08/27/integrating-climate-to-the-eu-commission-securitization-proposal/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martin2025integrating, author = {Martin, Léo}, title = {{Integrating climate to the EU Commission securitization proposal}}, publisher = {Reclaim Finance}, year = {2025}, month = aug, url = {https://reclaimfinance.org/site/en/2025/08/27/integrating-climate-to-the-eu-commission-securitization-proposal/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }