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This is what system change looks like
Right now, we are heading towards climate chaos at full speed but there’s a powerful emergency brake we can apply through financial regulation.
We are heading towards climate chaos at full speed but there’s a powerful emergency brake we can apply through financial regulation.
Right now, the European Parliament is considering the ‘one-for-one’ capital requirements rule. This would make it incredibly hard for new fossil fuel projects to get funding and can help us achieve the kind of systemic change we desperately need.
This rule will ensure that for every euro invested in fossil fuels, companies in the EU would need to match it by another euro to cover any future losses. This forces financial giants to build their own safety net rather than rely on government bailouts, or in other words, our tax money. [1]
Despite huge public outrage at the EU Commission's proposal to classify fossil gas as “green” with their new energy taxonomy, the Parliament went ahead with it. But there are other ways we can stop money flowing into new fossil fuels projects and this piece of regulation could be a serious game changer! [2]
The rule is already there, we simply need to encourage the Parliament to add fossil fuel projects to the list of “high-risk” investments. As always, the oil and gas lobbyists are out in full force, so we need to urgently counter their influence.
Together with hundreds of thousands of Europeans, partner NGOs, scientists and politicians, we have pushed the EU to pass stricter laws on green investments, and forced the European Central Bank to review its dirty monetary policy investments. Today, the “one-for-one” rule can stop banks and insurers from fuelling the climate crisis and the next financial meltdown.
With hope and solidarity,
Lisa, Kate, Matilda, Nick and everyone at 350 Europe
Sources
[1] 'One for One' campaign website
[2] Call for “one-for-one” prudential capital requirements on fossil fuel financing to prevent an economic crisis (Finance Watch)
