Position Note on the Capital Markets Union (CMU)

Reclaim Finance argues that the Capital Markets Union (CMU), as currently proposed, lacks the necessary environmental criteria to ensure that increased capital volumes support the ecological transition rather than polluting activities. The organization warns that some CMU measures could weaken prudential frameworks and supervisory mandates without considering climate risks. Reclaim Finance proposes that any CMU-related product or label must include strict climate criteria, including the exclusion of fossil fuel developers, and suggests alternative models like citizen-led sustainable project funds to avoid further financialization of the economy.

• The Capital Markets Union is framed by its promoters as a necessary tool to mobilize private finance for the European transition, particularly in a context of high public debt and costly capital, often compared unfavorably to the more fluid and deeper capital markets of the United States.
• Reclaim Finance contends that the CMU's core measures are not specifically designed for sustainable activities and will likely benefit both "brown" and "green" sectors equally, potentially increasing overall emissions if no redirection mechanisms are implemented.
• The organization identifies a risk that certain CMU proposals, specifically those regarding securitization, would weaken the existing prudential framework and deviate from Basel rules without accounting for climate-related risks, which could threaten financial stability.
• Reclaim Finance argues that for a CMU to be useful to the transition, it must mandate the adoption of robust transition plans by financial players, end support for fossil fuel development, and ensure all new labels or products are regulated to prevent support for polluting activities.
• Regarding the reform of the European Securities and Markets Authority (ESMA), Reclaim Finance warns that a "competitiveness" mandate would be dangerous, as it contradicts the mission of a financial supervisor and could lead to ill-considered risks and weakened customer protection.
• As an alternative to the CMU's approach to financialization, the document suggests Member States create funds to guarantee direct citizen participation in sustainable projects, utilizing a public guarantee mechanism and clear alignment with European climate ambitions.

APA

Reclaim Finance (2024). Position Note on the Capital Markets Union (CMU). https://reclaimfinance.org/site/wp-content/uploads/2024/10/Reclaim-Finance-Note-Capital-Markets-Union-September-2024.pdf

Chicago

Reclaim Finance. Position Note on the Capital Markets Union (CMU). 2024. https://reclaimfinance.org/site/wp-content/uploads/2024/10/Reclaim-Finance-Note-Capital-Markets-Union-September-2024.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=Position Note on the Capital Markets Union (CMU) |date=September 2024 |url=https://reclaimfinance.org/site/wp-content/uploads/2024/10/Reclaim-Finance-Note-Capital-Markets-Union-September-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinance2024position, author = {{Reclaim Finance}}, title = {{Position Note on the Capital Markets Union (CMU)}}, publisher = {Reclaim Finance}, year = {2024}, month = sep, url = {https://reclaimfinance.org/site/wp-content/uploads/2024/10/Reclaim-Finance-Note-Capital-Markets-Union-September-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }