Amendments to the European Commission securitisation proposal

Reclaim Finance argues that the European Commission's proposal to revive securitisation lacks safeguards against financing polluting activities and may hide climate-related risks. The organization proposes amendments to require investor due diligence on ESG risks, mandate disclosure of fossil fuel exposures, and either ban fossil fuel securitisation or impose high risk weights (up to 1250%) on such positions. It further suggests that the securitisation sub-committee publish ESG risk management guidelines and that future regulatory reviews explicitly assess the impact of securitisation on EU climate and environmental goals.

• Reclaim Finance contends that the European Commission's impact assessment fails to identify negative climate implications of its securitisation initiative, incorrectly suggesting that reviving the market could support green investments while ignoring that it could equally "facilitate the financing of heavily polluting activities".
• The document asserts that securitisation can be used to obscure and distribute climate-related and ESG risks because there is currently "no transparency on the exposure of securitized assets to these risks" and a lack of mandatory investor due diligence.
• Reclaim Finance proposes amendments to the Securitisation Regulation to mandate that investors explicitly consider "potential exposure to ESG risks" and verify whether underlying exposures include "exposure to fossil fuel assets".
• To discourage the financing of polluting projects, the document proposes either a total ban on the securitisation of fossil fuel assets—defined as assets linked to coal, oil, and gas production—or the application of a high risk weight of "no lower than 1250%" for such positions.
• The organization recommends that the securitisation sub-committee be required to develop and publish "guidelines for the management of ESG risks in securitisation" within 12 months of adoption.
• Reclaim Finance argues that securitisation will play a "limited role" in meeting the EU's transition funding needs and may increase risks by expanding the influence of "lightly regulated non-banking institutions".

APA

Reclaim Finance (2025). Amendments to the European Commission securitisation proposal. https://reclaimfinance.org/site/wp-content/uploads/2025/08/RF-Amendements-to-the-securitisation-proposal-July-2025.pdf

Chicago

Reclaim Finance. Amendments to the European Commission securitisation proposal. 2025. https://reclaimfinance.org/site/wp-content/uploads/2025/08/RF-Amendements-to-the-securitisation-proposal-July-2025.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=Amendments to the European Commission securitisation proposal |date=July 2025 |url=https://reclaimfinance.org/site/wp-content/uploads/2025/08/RF-Amendements-to-the-securitisation-proposal-July-2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinance2025amendments, author = {{Reclaim Finance}}, title = {{Amendments to the European Commission securitisation proposal}}, publisher = {Reclaim Finance}, year = {2025}, month = jul, url = {https://reclaimfinance.org/site/wp-content/uploads/2025/08/RF-Amendements-to-the-securitisation-proposal-July-2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }