Bank’s green financing rises by 85 per cent so far in 2017
The European Bank for Reconstruction and Development (EBRD) has posted a sharp increase in green economy financing in the first five months of 2017, putting it well on track to meet ambitious climate finance objectives announced in the run up to the 2015 Paris Climate Agreement.
Ahead of the Paris accord, the EBRD unveiled its Green Economy Transition (GET) approach, under which it aims to dedicate 40 per cent of its annual investments to climate finance by 2020, compared with an average of around 25 per cent in the previous five years.
The EBRD is applying its private sector investment model to reducing carbon emissions with energy efficiency and renewable energy projects while also promoting the transfer of green technology to its regions.
In the first five months of this year, the EBRD invested €913 million in green finance, compared with €493 million in the same period of last year.
“We invested one third of all of our investments in the green economy in 2016. We are well on target to meet our 40 per cent goal for 2020 which we set within the framework of the Paris Agreement. We remain fully committed to this objective,” said EBRD President Sir Suma Chakrabarti.
Ever since its inception, the EBRD has placed a high priority on sustainable and environmentally sound investment. It is a leading investor in its regions in the renewable energy markets. With its Green Energy Financing Facilities it has pioneered a model of delivering funds for renewable and energy efficiency projects via the banking sector.
Among its climate finance investments so far this year, the EBRD mobilised financing for the private sector energy firm Prosin Enerji, to support the development of the geothermal energy sector in Turkey.
This was the first transaction under a joint EBRD initiative with the Clean Technology Fund that aims to provide finance and advice to private developers to help minimise risks associated with geothermal exploration and is an important milestone in the EBRD’s support to the development of the geothermal sector in Turkey.
In addition to its climate change mitigation investments, the EBRD was also active in its work to help economies adapt to the impact of climate change, In Kazakhstan it announced a US$ 180 million programme to upgrade irrigation systems in the country in order to improve water supplies affected by changing weather conditions.