EBRD to offer climate resilient debt clauses in sovereign, municipal loans

• CRDCs are primarily a short-term liquidity support tool which could provide borrowers with a fiscal “breathing space” at the time of a severe climate-induced or natural disaster, allowing them to repurpose financial resources from debt servicing to immediate response and recovery needs, and addressing the loss and damage from the impacts of climate change and natural hazards.    

The EBRD made its announcement along with other multilateral development banks - the African Development Bank (AfDB), the European Investment Bank (EIB) and the World Bank - at a COP28 event on climate resilient debt clauses.  

The increasing frequency and severity of extreme weather events worldwide in recent years has given added prominence to work on both climate adaptation and emergency responses to such events.  

The EBRD, a leader in climate finance in central and eastern Europe, Central Asia and the southern and eastern Mediterranean, has aligned all its activities with the goals of the Paris Agreement and has committed to make at least half its investment volumes green by 2025, a goal it has met for the past two years.