The European Bank for Reconstruction and Development has stepped forward to be the first multilateral development bank (MDB) to draft a methodology for aligning its indirect investments with the Paris climate agreement. Commendably, the EBRD has opened up its work for public scrutiny, with the deadline today for stakeholders to submit comments.
Recourse called on the EBRD to ensure the methodology sets a higher bar for other MDBs to follow. In its submission, Recourse urged the EBRD to set clearer targets and timelines for its FI clients to align with Paris, to rule out all fossil fuel finance, and to be open about where its indirect investments end up.
“Public finance should be leading the way in the shift from dirty, fossil-fuel-based development to a greener, more sustainable future. The EBRD’s Paris alignment methodology is a start but does not go far enough or fast enough. We need more ambition and urgency to tackle the climate crisis,” says Kate Geary, the author of Recourse’s submission.