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 Alignment | Reasoning |
| Some progress | The EIB has comprehensive GHG accounting methodology with a relatively low inclusion threshold of 20 ktCO2e/year of absolute and/or relative emissions, reflecting best practice among the MDBs. The EIB tracks both absolute and relative emissions across all sectors. However, while absolute and relative portfolio emissions (prorated to lending volumes) have been steadily decreasing in recent years, the EIB has not set a clear absolute GHG portfolio-wide emissions target. |
| Year started | Inclusion threshold (CO2e/ year) | Sectors covered | Target |
| 2009 | Absolute emissions >20 ktCO2e/year Relative emissions >20 ktCO2e/year | The carbon footprint methodology is applied to all sectors. | The Bank does not have any portfolio-level targets on GHGs emissions reduction. |
Explanation
Portfolio level GHG accounting
In 2009, the EIB instituted a comprehensive system for tracking portfolio emissions, the Project Carbon Footprint Methodologies. The methodologies set out the internal rationale and process for GHG accounting at a project level. It focuses on direct investment loans and large framework loan allocations, but does not consider indirect emissions, i.e. from financial intermediaries. The EIB states this is “due to the limited information available to carry out a meaningful calculation”. The methodology is updated regularly to reflect changes in threshold policies and latest accounting methods. The latest update took place in 2023.
The EIB publishes the aggregated results for both absolute and relative portfolio level GHG emissions annually as part of its Carbon Footprint Exercise in the EIB Group’s Sustainability Report. The 2022 and 2023 reports state that the carbon footprint of EIB financing has gone down from 5,200 ktCO2e/year in 2020, 2,300 ktCO2e/year in 2021 and 1,600 ktCO2e/year in 2022 to 1,200 ktCO2e/year in 2023 in terms of absolute emissions. Relative emissions have also decreased from –2,300 ktCO2e/year in 2021 to –4,600 ktCO2e/year in 2022 and –5,200 ktCO2e/year in 2022 (all numbers are prorated to lending volumes)[1]
Portfolio level GHG targets
The EIB has not adopted a target to peak and reduce emissions at portfolio level. The Bank does not believe this approach is practical for a lender focused on “Use of Proceeds” (UoP) lending, where disinvestment from old lending is not feasible. The EIB’s analysis indicates that their current approach based on the Paris Alignment procedures and Energy Lending Policy does not need to be complemented by such a target. However, E3G’s position remains that GHG targets are a valuable supplementary tool for MDBs to have in place. Indeed, far from supplanting comprehensive Paris alignment requirements, they should actively support this process.
Project level GHG accounting
Minimum thresholds for inclusion in the GHG accounting exercise are set at 20,000 tonnes CO2e per year (either positive or negative) for both absolute emissions and carbon sequestration equivalent, as well as for relative emissions. All investment projects across sectors that meet or exceed the thresholds are assessed for carbon emissions.
These thresholds are among the lowest used by MDBs and represent a best-practice approach. Additionally, the EIB is promoting the harmonisation of approaches to GHG accounting by collaborating with other MDBs and IFIs.
In line with these efforts, the EIB reports the carbon footprint of each project, including scope 1 and scope 2 emissions. However, scope 3 emissions are only included for a limited number of projects in the energy, transport and industry sectors, from which scope 3 emissions are known to be significant, and estimations possible. To calculate emissions, the EIB follows the methodologies outlined in the GHG Protocol “Corporate Accounting and Reporting Standard”. While the EIB calculates 100% of its projects’ emissions, regardless of the Bank’s share in the total investment, the reported results are prorated according to the EIB’s proportion of the financing plan. This data is published in the project’s Environmental and Social Data Sheet (ESDS).
It is worth highlighting that the EIB’s Carbon Footprint Methodologies are regularly updated in line with the latest available science and data. The current assessment of the EIB’s GHG accounting processes is based on the January 2023 version of the methodologies.
Recommendations:
- In alignment with Europe’s commitment to net zero by 2050, the EIB should consider setting an absolute GHG emissions target at the portfolio level for its EU-wide operations. This initiative would strengthen the Bank’s contribution to the EU’s climate objectives and set a meaningful example for other international financial institutions to follow, ensuring that the EIB supports the 2050 net zero transition through its investments.
- The EIB should broaden its GHG accounting practices to include scope 3 emissions across its portfolio, as doing so is essential for accurately assessing the full climate impact of its investments and ensuring more informed, climate-aligned decision making.
[1] All numbers are prorated to lending volumes.
Last Update: April 2025