EBRD SCALES UP ENVIRONMENTAL FINANCE
The European Bank for Reconstruction and Development (EBRD) has unveiled an ambitious plan to scale up even further its climate and environmental finance and its work supporting a green, low-carbon and resilient future.
Already at the forefront of climate and environmental action, the EBRD is now considering a goal of devoting over 50 per cent of its annual investments to the green economy by 2025.
In addition to the aim of making more than 50 per cent of its financing green, the plan would target specific emission reductions over the next five years and set a date for a decision on when all the EBRD’s projects are aligned to the Paris Climate Agreement.
The Bank’s Board of Directors approved the new Green Economy Transition plan at its meeting on 8 July. This plan forms part of the EBRD’s overall strategy for the next five years and will become effective with this strategy, due for approval by shareholders at the Bank’s Annual Meeting, scheduled for 7-8 October.
The plan to become a majority green bank by 2025 builds on success in the past five years, during which the average green finance ratio rose to 40 from 25 per cent.
The EBRD launched its Green Economy Transition (GET) approach in 2015 in the run-up to the Paris climate talks at the end of that year.
The scaled-up approach (GET 2.1) defines clear action areas to support a green economic recovery in its regions of operations taking account of the impact of the coronavirus pandemic.