The European Bank for Reconstruction and Development (EBRD) said it aims to fully align its operations with the Paris Agreement goals of climate change mitigation, adaptation and financing. within the next 20 months.
“Our suggestion is that by the beginning of 2023, everything we do will be in line with the Paris Agreement,” EBRD President Odile Renaud-Basso said on April 15 in an important speech marking the 30th anniversary of the Bank’s founding. She said EBRD management will work with the Board of Directors in the coming weeks to prepare a resolution to be brought before the Board of Governors at the Bank’s 2021 Annual Meeting on June 28 – February 2. 7.
“This will be an important step in our approach and we will further support all economies where we invest in their low carbon transition,” said Renaud-Basso.
Under its current strategy, EBRD has committed to dedicating most of its investments to support the transition to a green economy by 2025, the bank added, adding that compliance with the Paris Agreement will commit the Bank to only make investments that are consistent with the 2030 Agenda goals, namely to keep the average global temperature rise below 2 ° C above pre-industrial levels and follow chasing efforts to limit that increase to 1.5 ° C. President Renaud-Basso emphasized: “We are putting all our weight behind the non-pure transition.”
She also emphasized that combating climate change is an urgent and long-term effort, with different solutions required for each country. “Thirty years ago, our active countries faced the challenge of transitioning from a command economy to a market economy. Over the next 30 years, they will face the enormous challenge of transitioning from a fully hydrocarbon-dependent economic model to a net zero-emissions economy. We realize that each country will have a different path in that transition, but our goal is to support them every step of the way. “
According to EBRD, one of the major challenges facing governments today is increasing the amount of money spent on climate finance from the billions to the trillions required by a low carbon transition. EBRD’s focus on private sector mobilization gives the Bank a unique role in doing this. “The Bank’s founding premise is that well-regulated markets can open up the scale and ingenuity of the private sector to address our biggest problems,” stressed the EBRD Chairman.
Supporting the private sector was one of the founding principles of EBRD when it was founded 30 years ago to “foster the transition to open market-oriented economies and drive initiatives. business and private sector ”, as set out in Article I of the Agreement Establishing the Bank.
When EBRD started operations, it invested in 8 countries in Central and Eastern Europe and had 48 shareholders around the world. Today, the Bank invests in 38 economies in central, eastern and southeastern Europe, southern and eastern Mediterranean, central Asia and the Caucasus and has 71 global shareholders. “Our character is both multilateral and strong in Europe,” said the President. In the coming weeks, EBRD is expected to surpass the 150 billion Euro investment milestone.
The most pressing crisis right now is overcoming the coronavirus pandemic and ensuring recovery, EBRD said, adding that the bank had invested a record 11 billion euros by 2020 to cope with the crisis. panic and will continue to side with customers and the economies in which it invests. . The Bank will continue to address the pressing needs of businesses, support a strong and sustainable recovery, and help countries operate and its customers build back for the better. “EBRD must continue to help shape the fortunes of regions,” stressed Renaud-Basso.