Thursday 9 July 2020

EBRD considers making half of its annual investments green by 2025

The European Bank for Reconstruction and Development (EBRD) has announced it is considering a goal of devoting more than half of its annual investments to the green economy by 2025.

The bank says an updated climate plan would further its climate and environmental finance and support a "green, low carbon and resilient future", through targeting specific emission reductions over the next five years and setting a date for a decision on when all the EBRD’s projects will become aligned to the Paris Climate Agreement.

The Bank’s Board of Directors has approved the new Green Economy Transition plan, which is now due for approval by shareholders at the Bank’s Annual Meeting in October.

Over the last five years, the bank's average green finance ratio has risen from 25% to 40% - going forwards it plans to step up policy work to ensure its 38 emerging economies can effectively achieve their climate and environmental goals, target cumulative greenhouse gas emissions reduction of up to 40 million tonnes per year by 2025 and increase its capacity to support the decarbonisation efforts of a range of countries, regions and sectors.

It said: "The EBRD would work towards full alignment with the Paris Agreement, on which a decision would be taken no later than 2022, taking into account the lessons learned from the initial phase of implementation of the methodology jointly developed by the Multilateral Development Banks."