The Paris Agreement

EBRD finance and Paris alignment

Since 2006, EBRD green finance has totalled more than €36 billion over more than 2,000 projects, with a substantial environmental and transition impact.

The Paris alignment of the EBRD’s financial flows is anchored in Article 2.1(c) of the Paris Agreement, which commits signatories to make "finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development".  Alignment of finance, therefore, relates to both the mitigation and adaptation goals of the Paris Agreement.

Directly financed EBRD investments

In June 2021, the EBRD published its “methodology to determine the Paris Agreement alignment of directly financed EBRD investments” for public consultation. This methodology sets out how the EBRD will determine whether projects the Bank may finance are “aligned” or “non-aligned” with the mitigation and adaptation goals of the Paris Agreement.

All relevant projects passing Concept Review Memorandum (CRM) from June 1st 2021 will be subject to an alignment determination, which following approval of the project by EBRD management, will be specified in the project’s Board memorandum, along with accompanying evidence.

The scope of the methodology for public consultation was EBRD’s direct finance investments, covering projects that involve specific capital expenditure. The EBRD received a number of responses from external organisations covering all aspects of the methodology. The feedback received will be taken into account for the issuance of an updated version of the methodology to be published in 2022.

Methodology FOR DIRECTLY FINANCED INVESTMENTS
(CONSULTATION VERSION)

Public consultation report FOR DIRECTLY FINANCED INVESTMENTS

Indirectly financed EBRD investments

In December 2021, the EBRD published its “methodology to determine the Paris Agreement alignment of indirectly financed EBRD investments” for public consultation. This methodology refers to EBRD finance extended to financial intermediaries that finance a set of sub-transactions to end beneficiaries (through sub-projects or sub-investments).

The EBRD is holding a public consultation on the methodology to determine the Paris Agreement alignment of indirectly financed EBRD investments. Open between 16 December 2021 and 4 February 2022, the EBRD invites comments which should be sent to the email address: ParisAgreement@EBRD.com.

Following the public consultation, feedback received will be taken into account for the issuance of an updated version of the methodology to be published in 2022.

METHODOLOGY FOR INDIRECTLY FINANCED INVESTMENTS
(CONSULTATION VERSION)