EBRD pledges to accelerate private sector climate financing
The European Bank for Reconstruction and Development (EBRD) has pledged to double its efforts to mobilise private sector climate financing by 2025
The development bank set out its plans to meet the target at the COP26 climate summit in Glasgow this week (November).
The EBRD says it will support the transition to a low-carbon economy in its countries of operation and has detailed how it intends to meet the target in its Action Plan on Mobilising Private Capital for Climate Finance.
Through the plan, the organisation is aiming to develop a regulatory environment for low-carbon investments to help them be more commercially viable.
The EBRD said: “A major challenge in emerging economies and developing countries is a shortage of bankable climate projects. Several factors limit the supply of such projects. The most fundamental is the lack of either an implicit or an explicit carbon price. Without a carbon price, many green investments are not commercially viable.”
The plan explores options for:
green and sustainability-linked bonds
innovative financing mechanisms for industrial decarbonisation
targeted loans to support the circular economy
low-carbon sector pathways