The European Bank for Reconstruction and Development (EBRD) plans to devote over 50% of its annual investments to the green economy by 2025 in line with the bank's newly approved proposal, a statement said Wednesday.
The EBRD's Board of Directors approved the new Green Economy Transition (GET) plan at its meeting on July 8.
The EBRD launched its GET approach in 2015 in the run-up to the Paris climate talks at the end of that year while the scaled-up approach named GET 2.1 defines clear action areas to support a green economic recovery in its regions of operations taking account of the impact of the COVID-19 pandemic, it said in the statement.
The scaled-up plan would target specific emission reductions over the next five years and set a date for a decision on when all the EBRD's projects are aligned with the Paris Climate Agreement, according to the statement.
"This plan forms part of the EBRD’s overall strategy for the next five years and will become effective with this strategy, due for approval by shareholders at the Bank’s Annual Meeting, scheduled for 7-8 October," the bank said.
The plan to become a majority green bank by 2025 builds on records in the past five years, during which the average green finance ratio of the EBRD rose to 40% from 25%, according to the statement.
The bank said that under GET 2.1, the EBRD would also step up policy work to ensure its 38 emerging countries can effectively achieve climate and environmental goals.
The bank would seek to achieve a reduction of cumulative greenhouse gas emissions of 25 to 40 million tons per year by 2025, the new plan revealed.
As part of the scaled-up green transition plan, the bank would screen all investments for alignment with the Paris Climate Agreement and national climate-related action plans taking into consideration the priorities set in country and sector strategies.
"The EBRD would work towards full alignment with the Paris Agreement, on which a decision would be taken no later than 2022," it said in the statement.
By Nuran Erkul Kaya