The European Bank for Reconstruction and Development (EBRD) is reinforcing its position as a leader in green finance with an ambitious plan to broaden and deepen its climate activities and become a majority green bank by 2025.
The EBRD’s new Green Economy Transition (GET) approach for 2021-25 forms part of the Bank’s overall strategy for the next five years, which won approval from the Board of Governors at the EBRD Annual Meeting. GET 2021-25 will be the EBRD’s new blueprint for supporting its countries of operation, including Armenia, to pursue a green, inclusive and resilient recovery from the impact of the pandemic.
GET 2021-25 will build on the success of an already ambitious GET approach for 2015-20, which the EBRD launched in the run-up to the Paris climate conference, where countries agreed to take action to keep global warming below. The first GET approach has already taken EBRD green investments to over 40 per cent of its total investment last year, from an average of 24 per cent in the decade to 2015.
The Prince of Wales, who has a lifelong commitment to a greener future, said he wants the worldwide goal of net zero carbon emissions by 2050 – which should keep global warming below an agreed target of 2C – to be brought forward. “I am afraid 2050 simply suggests we have room to delay. We do not,” he said in a recorded speech at the opening of the two-day meeting.
GET 2021-25 sets an ambitious target for the green share of EBRD investment to reach more than 50 per cent by 2025. It also commits the EBRD to focus on aligning with the Paris Agreement goals, with a decision on full alignment to be considered within the next two years.
The new GET 2021-25 approach will broaden the range of the Bank’s green investments by innovating across a range of thematic action areas including energy efficiency, adaptation, green financial systems, industrial decarbonisation, sustainable food systems, energy systems integration, cities and environmental infrastructure, sustainable connectivity, green buildings and natural capital.
To counter the pandemic’s economic effects, large-scale stimulus packages will be needed to kickstart activity. Linking this economic stimulus with ever more effective climate action – and helping the world “tilt to green” in time to avoid catastrophic levels of global warming – will be critical in accelerating the transition to a low-carbon economy. GET 2021-25 offers a clear and structured roadmap towards a sustainable future.
Source: EBRD
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