2024 European Elections – Four key measures on finance

The policy brief argues that achieving the EU's climate goals requires a rapid reorientation of private finance, as the current 'clean energy:fossil fuel' finance ratio for major EU banks is only 1.6:1. Reclaim Finance proposes four key measures: mandating a 6:1 investment ratio in clean energy versus fossil fuels by 2030, requiring robust and binding climate transition plans aligned with a 1.5°C trajectory, prohibiting financial services for new fossil fuel production projects based on the 'do no significant harm' (DNSH) principle, and urging the European Central Bank to offer preferential refinancing rates for sustainable activities, such as energy-efficient building renovations.

• To limit global warming to 1.5°C, the ratio of investment in clean energy compared to fossil fuels for major EU banks must increase from the current average of 1.6:1 to at least 6:1 by 2030. This ratio would rise to 9:1 if energy efficiency investments, such as building renovations and transport infrastructure, are included.
• Current climate transition plans for financial players are often insufficient or used for greenwashing. Reclaim Finance argues these plans must be aligned with a 1.5°C trajectory with limited negative emissions and must be binding, with implementation monitored through audit procedures and dissuasive sanctions.
• Financial services should be prohibited for companies and projects involving new coal, oil, and gas production, as nearly 40% of developed fossil fuel reserves cannot be used if the 1.5°C goal is to be met. The 'do no significant harm' (DNSH) principle should be the primary criterion for granting financial services.
• The European Central Bank (ECB) should implement a 'differentiated' rate mechanism, offering lower refinancing rates to banks that finance sustainable activities, particularly energy-efficient building renovations and renewables. This would protect capital-intensive sustainable investments from the negative effects of general interest rate hikes.
• Significant investment gaps exist for the EU's 2030 targets; the European Commission estimates an additional annual spend of 620 billion euros is needed, while the European Court of Auditors estimates 1,000 billion euros per year.
• Private finance is expected to provide the vast majority of energy transition investments by 2030, with the IEA estimating 85% and the European Commission estimating between 80% and 83%.

APA

Reclaim Finance (2024). 2024 European Elections – Four key measures on finance. https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Four-key-measures-on-finance-UE-Elections-2024.pdf

Chicago

Reclaim Finance. 2024 European Elections – Four key measures on finance. 2024. https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Four-key-measures-on-finance-UE-Elections-2024.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=2024 European Elections – Four key measures on finance |date=2024 |url=https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Four-key-measures-on-finance-UE-Elections-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinance20242024, author = {{Reclaim Finance}}, title = {{2024 European Elections – Four key measures on finance}}, institution = {Reclaim Finance}, year = {2024}, url = {https://reclaimfinance.org/site/wp-content/uploads/2023/08/RF-Four-key-measures-on-finance-UE-Elections-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }