The European Bank for Reconstruction and Development (EBRD) has unveiled a plan to step up its work to support a green, low-carbon future.
Already at the forefront of climate and environmental action, the bank is now considering a goal of devoting over 50 percent of its annual investments to the green economy by 2025, the EBRD said in a statement on Wednesday.
The plan also targets specific emission reductions over the next five years and sets a date for a decision on when all the EBRD’s projects are aligned to the Paris Climate Agreement, according to the statement.
The plan forms part of the bank’s overall strategy for the next five years, and is due for approval by shareholders at the bank’s annual meeting, scheduled for 7-8 October, the EBRD said.
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 percent, up from 25 percent, according to the statement.
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 operation, taking into account the impact of the coronavirus pandemic.
It would scale up investment by innovating across a set of specific environmental and climate mitigation and adaptation thematic areas such as greening the financial sector and energy systems, industrial decarbonisation, sustainable cities, food systems and connectivity, and natural capital preservation.
The EBRD is one of the biggest banks that invest in the Egyptian market, especially in renewable energy, with 115 projects to date, with a current portfolio of €4.248 million.