Wednesday, May 09, 2018

Development Banks ‘Not Aligned’ with Paris Agreement Goals:  Report

None of the big six are shifting fast enough to clean investments, finds E3G report, but the Inter-American Development Bank is a frontrunner.

A development bank-backed gas pipeline in Ukraine (Picture Credit: Dmytro Glazkov / World Bank) Click to Enlarge.
Multilateral development banks (MDBs) are falling short of pledges to climate-proof their investment portfolios, according to a report by think-tank E3G.

Six leading MDBs were assessed on the progress they had made in aligning their financial flows with the Paris Agreement goals, which they committed to in December 2017.

The Inter-American Development Bank (IDB) was ranked top and the European Bank for Reconstruction and Development (EBRD) bottom.  None were fully in line with the 1.5-2C global warming limit agreed in Paris.

Helena Wright, senior policy adviser at E3G and lead author of the report, said that while the banks had all increased their investments in clean energy, they were still channeling too much money into dirty energy.

“Scarce public finance should not be used to invest in fossil fuels when we need an urgent shift away from fossils to prevent the worst impacts of climate change,” said Wright.  “Given that we are far from reaching Paris goals, all public institutions will need to undertake radical reforms to support the transition.”

Read more at Development Banks ‘Not Aligned’ with Paris Agreement Goals:  Report

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