CLIMATE ROADMAP: now what?

The document critiques the ECB's climate roadmap as insufficient and proposes a comprehensive set of recommendations to align the bank's operations with the Paris Agreement. It advocates for replacing 'market neutrality' with a climate-aligned benchmark, decarbonising the collateral framework and asset purchases, and adjusting refinancing operations like TLTROs to penalise carbon-intensive lending. Additionally, it calls for the integration of climate risks into internal credit ratings and the implementation of stricter prudential capital requirements (Pillar I and II) for fossil fuel exposures to ensure financial stability and support the EU's low-carbon transition.

• The ECB is urged to act on its secondary mandate under Article 127(1) of the Treaty on the Functioning of the European Union (TFEU), which requires it to support the EU's general economic policies, including those aimed at environmental protection, without prejudice to price stability.
• The document argues that the ECB should adopt the 'double materiality' principle, recognizing both the financial risks climate change poses to the financial system and the impact that financial investments have on the environment and society.
• The ECB should replace its 'market neutrality' approach, which the authors claim leads to a 'carbon bias' by supporting major emitters, with a new benchmark aligned with the Paris Agreement's 1.5°C goal.
• The brief recommends the full decarbonisation of the Corporate Sector Purchase Programme (CSPP) and the collateral framework, specifically by excluding companies developing new fossil fuel production projects and adjusting 'haircuts' based on climate footprints.
• The authors propose adjusting Targeted Longer-Term Refinancing Operations (TLTROs) by linking interest rates to a bank's climate risk exposure and establishing a 'green TLTRO' pilot to fund energy-efficient building renovations.
• The ECB is encouraged to develop its own internal credit ratings and minimum standards that incorporate climate and nature-related risks, reducing reliance on private Credit Rating Agencies (CRAs) and ESG providers.
• The document calls for the implementation of Pillar I capital requirements and macroprudential tools to reflect the risks of fossil fuel assets, suggesting a 'One-for-One rule' where financing for new fossil fuel reserves is matched by the institution's own funds.

APA

Reclaim Finance (n.d.). CLIMATE ROADMAP: now what? https://reclaimfinance.org/site/wp-content/uploads/2022/04/Climate-Roadmap-now-what_.pdf

Chicago

Reclaim Finance. CLIMATE ROADMAP: now what? n.d. https://reclaimfinance.org/site/wp-content/uploads/2022/04/Climate-Roadmap-now-what_.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=CLIMATE ROADMAP: now what? |url=https://reclaimfinance.org/site/wp-content/uploads/2022/04/Climate-Roadmap-now-what_.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinancendclimate, author = {{Reclaim Finance}}, title = {{CLIMATE ROADMAP: now what?}}, institution = {Reclaim Finance}, url = {https://reclaimfinance.org/site/wp-content/uploads/2022/04/Climate-Roadmap-now-what_.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }