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Reclaim Finance identifies persistent financing of coal developers and companies without science-aligned exit dates by major French banks between 2021 and 2023, arguing that policy loopholes enable practices that may constitute greenwashing.

The UK became the first G7 country to phase out coal power on September 30, 2024, with the closure of the Ratcliffe-on-Soar plant. However, the author contends that this domestic achievement is contradicted by the actions of UK financial institutions, which provided US$6.5 billion to the global coal industry between 2021 and 2023. The document calls for stronger financial regulations to end coal expansion funding and redirect capital toward renewable energy and early decommissioning.

Reclaim Finance contends that the Capital Markets Union (CMU), as currently proposed, will not solve the EU's climate funding gap. The organization argues that the CMU's broad approach would benefit all sectors, including polluting industries, while simultaneously weakening prudential standards and supervisory mandates. Specifically, the document warns that the increased use of securitization under the CMU could facilitate lending to high-carbon activities and obscure associated risks unless strict 'green' definitions and barriers against fossil fuel financing are implemented.

Reclaim Finance contends that the Capital Markets Union (CMU), while promoted by EU leaders as a solution to the investment gap for the European Green Deal, is not inherently a green finance tool. The organization warns that without targeted safeguards and a clear definition of 'green' securitization, the CMU could stimulate investment in high-carbon activities and undermine financial stability by weakening prudential rules.

The report finds that the majority of Lloyd's managing agents lack formal policies to stop underwriting new fossil fuel projects, contradicting the market's net-zero goals. While some have restricted coal, very few have restricted oil and gas, and none have restricted LNG export terminals. The analysis identifies specific deals where Lloyd's syndicates provided coverage for major US coal mines, Arctic oil and gas assets, and US LNG terminals.

Reclaim Finance identifies persistent problematic financing of the coal sector by BNP Paribas, Crédit Agricole, Société Générale, and BPCE/Natixis between 2021 and 2023. Despite overall funding decreases, the report finds that these banks supported 26 problematic groups, including coal developers and companies without climate-aligned exit dates. The analysis highlights four major policy loopholes—exclusion at the subsidiary level rather than the group level, minority ownership thresholds, the treatment of 'captive' industrial power plants, and reliance on confidential internal documents—which the report argues may constitute greenwashing and financial risk mismanagement.

Reclaim Finance analyzed transactions from 2021 to 2023 and found that four major French banks supported 26 problematic coal groups despite having policies to exit the sector. The report identifies four primary loopholes: exclusion only at the subsidiary level, lack of exclusion for minority stakes under 50%, exclusion of 'captive' coal plants at industrial sites, and reliance on confidential internal documents to justify financing companies without public exit dates. The author argues these practices are misleading to investors and regulators, urging the AMF and ACPR to sanction such 'greenwashing' and demand full transparency.

The steel industry accounts for 11% of global CO2 emissions, but decarbonization is hindered by financial institutions' reliance on outdated myths. The briefing argues that the next six years are critical for transformation and urges financial institutions to restrict funding for metallurgical coal and coal-based steel projects while increasing investment in fossil-free technologies.

The document argues that the steel sector, which accounts for 11% of global CO2 emissions, can be decarbonized rapidly through technological progress, but is hindered by outdated beliefs among financial actors. It lists ten misconceptions—including the idea that the sector is inherently 'hard-to-abate' or that non-fossil steel is too expensive—and urges financial institutions to stop funding coal-based steel projects in favor of fossil-free alternatives.

NGOs are demanding an international investigation into reports that Mozambican security forces committed massacres, torture, and sexual violence near the Mozambique LNG project site between July and September 2021. The statement highlights TotalEnergies' controversial relationship with the Mozambican military and calls on financial institutions to cease their support for the project due to severe human rights and environmental risks.

A group of NGOs, including Reclaim Finance and Friends of the Earth, is demanding an official investigation into reports of a massacre of civilians by Mozambican public security forces near TotalEnergies' premises in 2021. The NGOs highlight the company's financial and equipment ties to the Mozambican army and argue that financial institutions supporting the project must address these human rights risks.

Reclaim Finance analyzed the decarbonization targets of 30 major banks, finding that most targets are overly complex, opaque, and fail to create a direct link between goal achievement and actual emission reductions. The analysis highlights that targets based on 'financed' or 'facilitated' emissions are often influenced by company valuation fluctuations rather than climate action. The report recommends that fossil fuel targets be based on reducing funding, high-emission sectors use physical intensity metrics, and absolute emission targets avoid value-based attribution factors.

Reclaim Finance analyzed the decarbonization targets of 30 major banks, finding that most are overly complex and fail to link target achievement with actual corporate emission reductions. The report specifically criticizes the use of financed or facilitated emissions, which can be influenced by corporate value changes rather than emissions, and recommends shifting toward targets based on reduced finance for fossil fuel companies, physical intensity for industrial sectors, and absolute emissions without value-based attribution.

The European Central Bank (ECB) is criticized for making limited progress on climate action in 2024, specifically regarding its collateral framework, despite the increasing urgency of the climate crisis.

The ECB is criticized for limited progress on climate action in 2024, with the author arguing that current efforts are insufficient. While noting some advances in nature inclusion and fossil fuel exclusions in non-monetary portfolios, the document highlights missed opportunities in monetary policy and the abandonment of greening measures for the collateral framework. It calls for transparent sanctions against banks failing climate risk assessments, the adoption of robust transition plans, the exclusion of fossil fuel assets from collateral, and the consideration of dual interest rates in the upcoming 2025 monetary policy strategy review.

ENGIE, a major electricity producer with over 100 GW of capacity, continues to generate half of its electricity from fossil fuel plants and is developing new fossil gas projects. This expansion contradicts International Energy Agency projections for electricity decarbonization by 2035 for European and OECD countries and 2040 globally. The document asserts that ENGIE lacks a robust transition plan and calls on French banks to stop financing new gas-fired power plants and demand an end to the company's gas expansion strategy.

Reclaim Finance criticizes ENGIE for continuing to rely on fossil gas for over 50% of its 100 GW installed capacity and for pursuing new gas projects, such as the conversion of the Mejillones plant in Chile and a new plant in Nijmegen, Netherlands. The report highlights that French banks provided $3.4 billion to ENGIE between 2019 and 2023, representing one-third of its total funding, yet most lack robust sectoral policies to exclude gas power. Specifically, it notes that Société Générale's exclusion policy for Combined-Cycle Gas Turbines (CCGT) is ineffective because its emission threshold of 420 kg CO2-eq/MWh is higher than current CCGT emissions. Reclaim Finance calls on these banks to cease funding new gas projects and demand a transition plan that triples renewable capacity by 2030 instead of merely doubling it.

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 document defines traditional and synthetic securitization and analyzes how these mechanisms can be used by fossil fuel companies to diversify funding and manage balance sheets. It critiques current 'green' securitization definitions for being too broad and proposes a three-dimensional framework—focusing on use of proceeds, asset character, and company commitment—to prevent the mechanism from indirectly financing fossil fuel expansion. Reclaim Finance advocates for a regulatory framework that ensures transparency and restricts securitization to sustainable energy activities.

The document argues that the steel sector is no longer 'hard-to-abate' due to advancements in green hydrogen and electric arc furnaces. It challenges the distinction between metallurgical and thermal coal, warns against reliance on CCUS, and highlights the risk of stranded assets. The briefing urges financial institutions to adopt strict sectoral policies to end financing for new blast furnaces and metallurgical coal projects while increasing investment in sustainable alternatives.