Islamic Development Bank

Energy efficiency strategy, standards and investment

This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs.

Paris alignmentReasoning
UnalignedEnergy policy mentions efficiency but further information on standards applied would be welcome
Overarching energy efficiency first strategy/principle
Transport energy efficiency Building energy efficiencyFinancial intermediary energy efficiency


IsDB has an Energy Sector Policy (December 2018) which includes a focus on energy efficiency stating the following:

“Maintaining the growth rate of energy consumption at a level compatible with sustainable development is essential, though it is more complex than simply adding supply. It is important for IsDB to assist Member Countries in: evaluating best practices in energy management; tailoring these practices to Member Countries’ unique characteristics; and adapting policy frameworks, and planning and management procedures, for the adoption of new energy-related technologies. IsDB, through well-designed and targeted energy-efficiency improvement projects, will assist all Member Countries in moving their energy sectors along a less energy intensive path.”

“The focus on energy efficiency will require a major increase in concessional or soft financing, even in middle-income countries. The Bank will identify opportunities for developing effective and innovative cooperation models with partner development institutions, through thematic programmes (e.g. for energy poverty, sustainability). This includes creating innovative financing and leveraging opportunities by setting climate financing architecture with external partners. This may include resource-mobilization opportunities and mechanisms such as crowdfunding and mapping of climate funds and donors.”

E3G understands that for energy efficiency, the IsDB uses best industrial standards and beneficiary country energy efficiency standards as the minimum benchmarks when investing in energy efficiency projects.

The transport strategy states that green investments will include “urban public transport, green freight (improving freight deliveries and collections so that they are organized to reduce journey distances and fuel consumption), and the expanded use of clean vehicles and clean fuels”.

Recommendation: IsDB should commit to specific energy efficiency standards as its peers have done, as the statement above does not mention any specific standards.


E3G intends to expand this metric to include industrial energy efficiency in the future.


Last Update: November 2020

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