24 February 2026

EUREC, along with 132 civil society organisations, financial institutions, academics, and experts, signed a letter asking the European Parliament and EU Member States to ensure that all funds falling under the three SFDR voluntary sustainable product categories consistently exclude companies developing new fossil fuel projects. Yet, the proposal presented by the European Commission in November falls short of this as it limits the exclusions to two categories.

This is an issue with broader implications for the coherence of the SFDR framework.

While presenting the Draghi report in September of 2024, European Commission President Ursula von der Leyen stated that “the only way to ensure our long-term competitiveness is to shift away from fossil fuels and towards a clean, competitive, and circular economy”. As both Member States and the European Parliament are now expected to adopt their respective position in the coming months, the signatories call on EU co-legislators to create a final SFDR framework that is coherent and credible, leaving no room for provisions that would undermine its objectives.

Read the full letter here.