{"id":22451,"date":"2022-07-04T18:52:55","date_gmt":"2022-07-04T16:52:55","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=22451"},"modified":"2023-02-08T12:15:37","modified_gmt":"2023-02-08T11:15:37","slug":"ecbs-climate-update-beware-of-the-fossil-fuel-blindspot","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2022\/07\/04\/ecbs-climate-update-beware-of-the-fossil-fuel-blindspot\/","title":{"rendered":"ECB\u2019s climate update: beware of the fossil fuel blindspot!"},"content":{"rendered":"

Press Release<\/b><\/span><\/strong><\/p>\n

Paris, July 4th 2022<\/span><\/b>\u00a0– Today, the European Central Bank (ECB) published the first update<\/a><\/span> on its year-old \u201cclimate roadmap\u201d. Despite minor progress, this update fails to remedy the roadmap\u2019s major shortcomings. It confirms that the ECB lacks ambition to truly align with European Union (EU) climate goals and could even continue to support major polluters. In this context, Reclaim Finance calls on the ECB to swiftly exclude fossil fuel developers from its purchases and collateral framework and set up a green lending facility.<\/span><\/span><\/span><\/span><\/span><\/b><\/p>\n<\/div><\/div><\/div>

Announced in July 2021 following the ECB\u2019s strategy review, the ECB\u2019s 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.<\/span>\u00a0<\/span><\/p>\n

The measures exposed in the update go slightly further than the initial roadmap. The ECB notably goes beyond a pure financial risk logic. It\u00a0integrates\u00a0criteria related to climate impact in its asset purchases \u2013 brought forward to October 2022 – and in\u00a0its collateral framework \u2013 newly announced for the end of 2024. <\/span>\u00a0<\/span><\/p>\n

However, the update does not address the roadmap\u2019s major flaws (2). The criteria put forward to decarbonize asset purchases and collaterals remain vague and would enable major polluters \u2013 including fossil fuel companies – to continue to benefit from the ECB\u2019s support (see <\/span>Reclaim Finance\u2019s summary and analysis of the measures in the table in annex<\/span>). Furthermore, no measure is taken by the ECB to help fund the EU transition.<\/span>\u00a0<\/span><\/p>\n

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Paul Schreiber, campaigner at Reclaim Finance, says:<\/strong> \u201c<\/span>While climate science shows we just can\u2019t 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\u00a0cut 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\u2019s fossil fuel dependency.\u201d<\/span><\/i> \u00a0<\/span><\/p>\n<\/blockquote>\n

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\u00a0its support to fossil fuel developers and set up a green lending facility (6).\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>

Contact<\/span>:<\/span><\/b><\/p>\n