{"id":21596,"date":"2025-12-10T11:48:23","date_gmt":"2025-12-10T10:48:23","guid":{"rendered":"https:\/\/stanislasjourdan.fr\/?p=21596"},"modified":"2025-12-10T16:18:35","modified_gmt":"2025-12-10T15:18:35","slug":"report-in-everyones-interest-how-the-ecb-can-support-the-energy-transition-with-green-interest-rates","status":"publish","type":"post","link":"https:\/\/stanislasjourdan.fr\/en\/2025\/12\/10\/report-in-everyones-interest-how-the-ecb-can-support-the-energy-transition-with-green-interest-rates\/","title":{"rendered":"REPORT: In everyone&#8217;s interest: How the ECB can support the energy transition with green interest rates"},"content":{"rendered":"\n<p><br><strong>In a new report commissioned by the WWF European Policy Office, I explore how the European Central Bank (ECB) can accelerate Europe\u2019s energy transition while reinforcing its price stability mandate. The report, entitled <em>In Everyone\u2019s Interest: How the ECB Can Support the Energy Transition with Green Interest Rates<\/em>, presents a concrete proposal for integrating <strong>EU Taxonomy <\/strong>based differentiated interest rates in the future structural refinancing operations of the ECB.<\/strong><\/p>\n\n\n\n<p>This new study prolongs and deepen the <a href=\"https:\/\/stanislasjourdan.fr\/en\/2024\/10\/02\/report-a-green-interest-rate-for-the-eurozone\/\">previous paper<\/a> which I wrote with colleagues at the Sustainable Finance Lab in 2024. It notably extends the analysis towards sectoral lending data published by banks as part of their Pillar 3 disclosures.<\/p>\n\n\n\n<p><strong>Key takeaways:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The 2022-2023 energy crisis has shown Europe&#8217;s vulnerability due to its dependencies on fossil fuels gas. We are still paying a high price for this dependency, with high inflation and competitiveness disadvantage.<\/li>\n\n\n\n<li>In this context, the ECB should recognise the EU\u2019s\u00a0 energy decarbonation goals as mission critical for both its primary and secondary mandate, and use differentiated interest rates policies as a leverage to support an accelerated deployment of renewable, grid upgrades, storage, and transport electrification.<\/li>\n\n\n\n<li>Green refinancing operations should be designed to incentivize banks to increase lending towards 68 selected Taxonomy activities that are most relevant for the decarbonation of the energy system.<\/li>\n\n\n\n<li>Based on an analysis of 47 EU banks\u2019 ESG disclosures report I estimate that around \u20ac10 billion in annual lending could have qualified for such ECB green refinancing operations in 2024. Applying greenwashing safeguards \u2013 such as excluding lending to firms not aligned with Paris Aligned Benchmarks criteria \u2013 would reduce eligible lending to approximately \u20ac3 billion. These relatively low volumes show that introducing this policy would poses minimal risk to the ECB\u2019s monetary policy stance on the short term.<\/li>\n\n\n\n<li>This research exercise has led me to identify many challenges in the use of the EU taxonomy by banks, in particular with DNSH criteria. For example, only 0.15% of the \u20ac82 billion stock of renovation loans in bank&#8217;s balance sheet have been found to be Taxonomy aligned. I propose some tentative solutions to remedy these difficulties.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-link-color has-text-align-center wp-element-button\" href=\"https:\/\/wwfeu.awsassets.panda.org\/downloads\/in-everyones-interest-december-2025.pdf\">Download the full report<\/a><\/div>\n<\/div>\n\n\n\n<p>Suggested citation<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Jourdan, S. (2025) <em>In everyone\u2019s interest: How the ECB can\u00a0 support the energy transition with green interest rates<\/em>. WWF-EU. Available at: <a href=\"https:\/\/wwfeu.awsassets.panda.org\/downloads\/in-everyones-interest-december-2025.pdf\">https:\/\/wwfeu.awsassets.panda.org\/downloads\/in-everyones-interest-december-2025.pdf<\/a><\/p>\n<\/blockquote>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a new report commissioned by the WWF European Policy Office, I explore how the European Central Bank (ECB) can accelerate Europe\u2019s energy transition while reinforcing its price stability mandate. The report, entitled In Everyone\u2019s Interest: How the ECB Can Support the Energy Transition with Green Interest Rates, presents a concrete proposal for integrating EU Taxonomy based differentiated interest rates<\/p>\n","protected":false},"author":1,"featured_media":21598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[1,416,99],"tags":[457,461,458,459],"class_list":["post-21596","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-eurozone-ecb","category-featured","tag-ecb-2","tag-eu-taxonomy","tag-green-monetary-policy","tag-green-tltros"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/stanislasjourdan.fr\/wp-content\/uploads\/2025\/12\/wwf-report-cover.png","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2om4O-5Ck","_links":{"self":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/21596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/comments?post=21596"}],"version-history":[{"count":6,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/21596\/revisions"}],"predecessor-version":[{"id":21612,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/21596\/revisions\/21612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/media\/21598"}],"wp:attachment":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/media?parent=21596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/categories?post=21596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/tags?post=21596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}