ESMA Launches First Climate Transition Plan
Overview
The European Securities and Markets Authority (ESMA) has unveiled its first Climate Transition Plan, setting ambitious emissions reduction targets for 2027 and 2030. This move signals a strong internal alignment with the EU’s climate goals and sets a precedent for regulatory bodies across Europe.
A Strategic Shift Toward Climate Neutrality
In a landmark move, ESMA has committed to reducing its gross greenhouse gas (GHG) emissions by 15.4% by 2027 and 31.4% by 2030, using 2023 as the baseline year. The ultimate goal? Achieving climate neutrality by 2050. This plan is not just symbolic—it’s a detailed roadmap that reflects ESMA’s intent to lead by example in the regulatory space.
Targeting the Big Three: Travel, Energy, and Food
ESMA’s emissions in 2023 totaled 457.1 tCO₂e, primarily from business travel, energy consumption, and food services. The agency is tackling these head-on with practical measures:
Introducing a GHG emissions budget for air travel.
Closing underutilized office floors to cut energy use.
Promoting low-carbon food options in staff canteens.
These internal levers are expected to deliver 72% of the 2027 target—a testament to the power of operational change.
Collaboration is Key for 2030 Goals
While internal actions will drive early progress, ESMA acknowledges that hitting the 2030 target will require external partnerships. This includes:
Working with landlords to decarbonize energy supply.
Engaging catering providers to adjust meal offerings.
Relying on aviation industry shifts to reduce travel emissions.
Financial and Environmental Wins
Beyond environmental benefits, the plan forecasts annual savings of €85,000 to €120,000 by 2030, thanks to reduced travel, energy efficiency, and smaller office footprints. While carbon credits and Sustainable Aviation Fuel (SAF) certificates are on the radar, ESMA emphasizes that direct emissions cuts are the priority.
Accountability and Adaptability
Progress will be tracked through annual reports, and the plan will be regularly reviewed to adapt to new data and external developments. As Natasha Cazenave, ESMA’s Executive Director, put it:
“Our plan is a demonstration of commitment. As market participants step up to implement their transition strategies, we must hold ourselves to the same standards.”
