Announced in July 2021 following the ECB’s strategy review, the ECB’s first climate roadmap (1) marked a symbolic turning point in the bank’s approach to climate change. One year after this announcement, the ECB updates the general public on the advancement of this roadmap and the new steps it plans to take to further consider climate change in the coming years.
The measures exposed in the update go slightly further than the initial roadmap. The ECB notably goes beyond a pure financial risk logic. It integrates criteria related to climate impact in its asset purchases – brought forward to October 2022 – and in its collateral framework – newly announced for the end of 2024.
However, the update does not address the roadmap’s major flaws (2). The criteria put forward to decarbonize asset purchases and collaterals remain vague and would enable major polluters – including fossil fuel companies – to continue to benefit from the ECB’s support (see Reclaim Finance’s summary and analysis of the measures in the table in annex). Furthermore, no measure is taken by the ECB to help fund the EU transition.
Paul Schreiber, campaigner at Reclaim Finance, says: “While climate science shows we just can’t build more coal mines or oil and gas wells, the ECB keeps on providing safe harbor to the assets of fossil fuel developers (3). By failing to cut off these polluters, the ECB ignores the call of more than 173 000 Europeans. It also worryingly disregards the current geopolitical and inflationary situation (4) that necessitates swiftly reducing the EU’s fossil fuel dependency.”
In this context, Reclaim Finance calls on the ECB Governing Council to urgently supplement its climate roadmap (5). The NGO stresses the need for the Eurosystem to end its support to fossil fuel developers and set up a green lending facility (6).