Green Cities in focus as Bank reaffirms its ambitious climate targets
The European Bank for Reconstruction and Development (EBRD) will join other global development organisations in stepping up the momentum for global climate action at the One Planet climate summit in Paris on 12 December.
EBRD President Sir Suma Chakrabarti will tell government leaders and other senior officials at the One Planet talks that the EBRD is expecting to meet its ambitious climate finance goals set at the 2015 Paris Climate Agreement three years ahead of time.
He will also unveil plans to step up EBRD support for the promotion of green cities, a major element in the EBRD’s target of dedicating 40 per cent of its annual investment to climate finance by 2020. EBRD climate finance has already been hovering around the 40 per cent marker for much of this year.
The EBRD helps develop open market economies in countries stretching across three continents, currently investing around €9 billion in 38 economies each year and leveraging significant volumes of additional finance from third parties, particularly from the private sector.
Ahead of the Paris summit, hosted by French President Emmanuel Macron, President Chakrabarti will meet the heads of other multilateral developments banks (MDBs) and members of the International Development Finance Club (IDFC) for discussions underscoring their determination to step up collaboration on climate action.
The group of MDB heads (currently chaired by President Chakrabarti) and the IDCF, a network of national and regional development banks, will also pledge to ensure that addressing the climate change challenge is entrenched even more firmly within their activities.
They are expected to issue a full statement after the talks on 11 December, which will be hosted by IDFC chair Remy Rioux, chief executive of AFD, the French Development Agency.
The EBRD has invested some €2.65 billion in 138 green energy projects so far this year, including around €1.8 billion on energy efficiency and €800 million on renewable energy.
The leading investor in green finance in many of its countries of operations, the EBRD has delivered over 1,400 green projects worth €25 billion since 2006, leading to 90 million tonnes of expected CO2 emission reductions each year, equivalent to more than the annual CO2 emissions from fuel combustion of Romania in 2015.
The Bank has also supported sustainable transport projects, including financing to cut energy use by Egypt’s railways and to reduce emissions from the Istanbul metro, in addition to supporting low carbon agricultural development and the promotion of green bonds.
It has maintained a very high level of investment in energy efficiency projects via its Green Economy Financing Facilities (GEFFs) which deliver finance through local banking networks in the economies where the EBRD is active.
Since 2006 the EBRD has provided over €4 billion via 130 partner financial institutions in 24 countries, funding over 120,000 subprojects in the small and medium sized enterprise, corporate and residential sectors.