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Reclaim Finance critiques Total SE's climate claims, asserting that the company's scope 3 emission targets are vague and insufficient. The organization argues that Total's projected emissions for 2030 will significantly exceed 1.5°C alignment levels and that its carbon intensity reductions are far below the 90% decrease recommended by Carbone 4 to limit warming to 2°C.

Reclaim Finance challenges Total SE's claims regarding its carbon neutrality ambitions and Scope 3 emission targets. The organization argues that Total's projected emissions will overshoot the 1.5°C trajectory by 200MT by 2030 and that its reported reductions in Europe are misleading. Reclaim Finance further criticizes Total's carbon intensity calculations for excluding non-fuel products and intermediate stages, concluding that the company's strategy is inadequate for limiting global temperature rise.

The paper argues that a low-carbon product standard—a market-based regulation establishing emissions intensity benchmarks with tradable credits—can incentivize the U.S. steel industry to adopt abatement technologies. It recommends regulating finished steel products (sheets, plates, bars, beams, pipes, and tubes) at the point of first sale, covering Scope 1, Scope 2, and significant upstream Scope 3 emissions (coke, lime, and direct-reduced iron). To prevent carbon leakage and maintain competitiveness, the authors suggest applying the standard to all steel products sold or imported into the U.S., including indirect steel products above a certain value threshold. The paper emphasizes that while such a standard is a powerful tool, it must be complemented by R&D funding, government procurement, and other policies to achieve full decarbonization.

The document argues that Total SE's carbon neutrality ambitions are 'window dressing' because they exclude global Scope 3 emissions and forecast increased hydrocarbon production. It highlights the contradiction between the climate pledges of major French banks and insurers and their continued financing of Total SE, including controversial projects like the East African Crude Oil Pipeline (EACOP).

The document analyzes the gap between Total SE's public climate ambitions and its actual business strategy, which continues to prioritize fossil fuel expansion. It highlights the role of French banks and investors in supporting this model and calls for a shift toward absolute emission reductions and the cessation of new fossil fuel projects.

The document argues for a stronger legal basis under Article 192 TFEU and proposes rigorous standards for measurement, reporting, and verification (MRV), leak detection and repair (LDAR), and a ban on routine venting and flaring (BRVF). It specifically highlights the need for granular data, the inclusion of abandoned wells and mines, and the implementation of methane intensity limits to drive innovation and align with EU climate targets.

In 2020, renewables generated 38% of the EU's electricity, surpassing fossil-fired generation (37%) for the first time. This shift was driven primarily by wind and solar, while coal generation fell by 20% to 13% of the total mix. However, the report notes that the transition remains too slow to meet 2030 and 2050 climate targets, as gas generation remains high and nuclear output saw a record 10% decline.

The document details the three-phase development of the Water Infrastructure Criteria, which aim to prevent 'greenwashing' in the green bond market by providing scientific standards for water-related investments. It covers built, nature-based, and hybrid infrastructure, with a specific focus on the newly added desalination criteria. The framework emphasizes a process-based approach to climate vulnerability assessments and sets a carbon intensity threshold of 100gCO2/kWh for desalination plants to align with the Paris Agreement.

In 2020, renewables became the EU's primary electricity source for the first time, generating 38% of electricity. While wind and solar growth remained robust despite the pandemic, the report argues that deployment must nearly triple to meet 2030 Green Deal targets. Coal generation fell by 20% in 2020, though this decline was partially offset by increased gas generation and a record 10% drop in nuclear output. Consequently, Europe's electricity carbon intensity fell to 226 grams of CO2 per kilowatt-hour in 2020, a 29% reduction since 2015.

The document critiques the French government's request for financial actors to adopt carbon intensity trajectories by March 2022, noting it avoids previous failed demands regarding fossil fuel exits. It specifically analyzes Crédit Agricole's new commitments, arguing that its exclusions for Arctic projects are poorly defined and its 20% portfolio exposure reduction by 2025 is limited because it excludes equity and bond issuances.

The analysis finds that 2018 U.S. light vehicle investments are critically misaligned with Paris Agreement goals, particularly in the private sector. While government spending shows better alignment, overall progress is hindered by the 'lock-in' effect of the existing fleet and the dominance of internal combustion engine vehicles. The report emphasizes that achieving climate targets requires higher fuel efficiency standards, mass EV adoption, and a transition to a low-carbon power sector.

The report finds that global power sector investment in 2018 was significantly misaligned with Paris Agreement goals, with 29% of new investment (USD 129 billion) flowing into fossil fuels. No major country or region is decarbonizing its power sector at the required pace, and no major investor category is fully aligned with Paris-aligned emissions intensity targets. The authors highlight a critical data gap, noting that asset-level transaction data was available for only 23% of tracked high-emissions power finance due to corporate balance sheet borrowing. To achieve alignment, the report recommends halting new carbon-intensive investments, accelerating the retirement of fossil-fuel plants, and scaling up low-carbon investments through public-private collaboration and improved climate risk reporting.

The paper introduces a science-based approach to assess the Paris alignment of new investments by comparing the carbon intensity of new assets against thresholds required to meet specific temperature goals, accounting for locked-in emissions from existing assets. Unlike portfolio-based methods that focus on current ownership, this method attributes responsibility to the original finance providers at the time of asset creation. The authors detail the application of this methodology to the global power sector and the U.S. light road vehicle transport sector, utilizing data from the IEA and other technical sources to establish carbon intensity benchmarks and evaluate financial commitments.

The report finds that while renewable energy investment is growing, continued funding for fossil fuel power plants and the presence of 'locked-in' emissions from existing assets keep the global power sector on a temperature trajectory exceeding 3.2°C. It highlights a significant gap between actual 2018 investment carbon intensities and the negative thresholds required by 2030 to achieve Paris alignment. The analysis identifies specific misalignments among major economies like China, India, and Japan, and among financial actors such as commercial banks and export credit agencies. The document recommends halting new carbon-intensive investments, accelerating the retirement of existing fossil fuel plants, and harmonizing climate risk reporting.

Reclaim Finance argues that the Net-zero Asset Owner Alliance's (NZAOA) target setting protocol contains loopholes regarding divestment strategies, the use of unrealistic climate scenarios, the lack of mandatory absolute reduction targets, and the absence of measures against anti-climate lobbying.

The report finds that while renewable electricity generation in the EU is projected to nearly double by 2030, the region is not on track to meet the European Commission's recommended 55% emissions reduction. Seven countries—Belgium, Bulgaria, Czechia, Germany, Italy, Poland, and Romania—are identified as the primary barriers to the transition, collectively accounting for 80% of projected 2030 power sector emissions.

The European Union has introduced the Paris Aligned Benchmark (PAB) and the Climate Transition Benchmark (CTB) to standardize green financial indices. However, Reclaim Finance argues these benchmarks are inadequate because they focus on carbon intensity rather than absolute emissions reductions and fail to exclude companies developing new fossil fuel projects. The briefing highlights the risk of greenwashing in passive index management, where assets under management exceed $10 trillion, and calls for stricter criteria, including absolute emission targets and a phased exit from fossil fuels by 2040 in OECD countries and 2050 globally.

The document critiques the EU's introduction of the Paris Aligned Benchmark (PAB) and Climate Transition Benchmark (CTB), stating they fail to require absolute greenhouse gas emission reductions or exclude companies developing new fossil fuel projects. It highlights the risk of greenwashing in passive index management, where over 20% of global assets are managed, and proposes four sets of stricter criteria for financial institutions to achieve genuine climate alignment.

The document advocates for clean fuel standards to decarbonize the transportation sector, which is the largest source of global warming pollution in the US. It explains how these standards use carbon intensity (CI) and a credit/deficit system to make clean fuels more affordable and polluting fuels more expensive. The text highlights the California Low Carbon Fuel Standard as a successful model and emphasizes the need for an equitable transition that benefits overburdened communities.

The Clean Air Task Force (CATF) supports the European Commission's proposed Carbon Border Adjustment Mechanism (CBAM) as a tool to prevent carbon leakage and encourage global climate action. CATF argues that a CBAM must replace the free allocation of certificates under the European Emissions Trading System (ETS) and be paired with innovation policies for advanced decarbonization technologies. The organization specifically warns against including methane in the ETS due to the complexities and potential counter-intuitive effects of Global Warming Potential (GWP) time horizons. CATF recommends that the CBAM apply to all imported energy based on verifiable greenhouse gas intensity, exempt Least Developed Countries and Small Island Developing States, and reinvest all revenues into climate innovation both within the EU and in developing countries.