EU Finance Institutions Announce Joint Ambitions for Climate Action ahead of FiC
Ahead of the Finance in Common Summit (FiC), the Association of European Development Finance Institutions (EDFI) has released a joint statemeAhead of the Finance in Common Summit (FiC), the Association of European Development Finance Institutions (EDFI) has released a joint statement on their intent to take further climate action. on their intent to take further climate action.
They include 5 commitments to act upon, as well as a timeline for when these actions should be completed. Disappointingly, there's nothing in there on gender or on ensuring social equality. However, there are specific plans on increasing adaptation finance, and plans to phase out finance for coal and oil. There's nothing about phasing out plans for gas, although I was told that this is because the CDC Group (UK Development finance institution) didn't support this, since domestically they don't have a commitment to phase out finance for gas.
Their 5 commitments are:
1. EDFIs will align all new financing with the objectives of the Paris Agreement by 2022 and will transition our investment portfolios to netzero GHG emissions by 2050 at the latest.
2. EDFIs will exclude new coal and fuel oil financing, and will limit other fossil fuel financing to Paris-aligned projects until generally excluding them by 2030 at the latest.
3. EDFIs will build on our track record in climate finance and the mobilisation of private sector finance by holding ourselves to ambitious individual targets and by reporting publicly on our progress.
4. EDFIs will invest strategically and provide assistance to our clients to support the development of Paris-aligned projects, and to promote green growth, climate adaptation and resilience, nature-based solutions, access to green energy, and a just transition to a low-carbon economy.
5. EDFIs will make climate related financial disclosures in line with high international standards, specifically adopting the recommendations of the Task Force on Climate-related Financial Disclosures. 6. EDFIs will embed climate action and climate risk management at every level of our institutions.