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 |
|---|---|
| Transformational | The EIB is a leading MDB in its Paris alignment process. It is the only MDB to have fully phased out unabated fossil fuel financing and has established itself as a leader by pioneering transformative green finance initiatives, including comprehensive green bond offerings. The EIB is also prominent within the PDB system, demonstrated by its strong support for initiatives like Finance in Common and its active collaboration with MDB peers. The EIB has also significantly increased its technical assistance and advisory services to both EU and non-EU countries. The EIB should continue to leverage its expertise from EU policy implementation to enhance its global operations and share experiences acquired within the broader PDB system as it expands internationally, notably through EIB Global. The Global Green Bond Initiative may serve as a good practice example. |
Explanation
The EIB has shown transformational leadership in a number of climate-related areas.
On Paris alignment, the Bank is most notable for being the only MDB to have phased out fossil fuels from its investments – and the second E3G-assessed PDB to do so (after Agence Française de Développement). In 2019, the Bank committed to end all financing for fossil fuel energy (including natural gas) projects by 2021. The OCI database and other independent stakeholders have verified that the EIB has not funded fossil fuel projects since 2022. The EIB’s greenhouse gas accounting practices represent best practice among its peers as the Bank reports and discloses absolute emissions for projects.
On green finance, the EIB is the world’s largest issuer of green bonds. It launched the green bond market alongside the World Bank in 2007 with the first issuance of the Climate Awareness Bond (CAB). By end-2024, the EIB has issued more than EUR 100 billion in CABs and Sustainability Awareness Bonds across 23 currencies, of which EUR 14.1 billion were issued in 2024. The EIB has further been recognised as the lead institution for the Global Green Bond Initiative launched at the Paris Summit in May 2023. Additionally, the EIB has been a pioneer in the use of shadow carbon pricing for cost–benefit analysis in project evaluation.
On technical support and cooperation, the EIB has been instrumental in the setup of the EU’s sustainable finance framework, which paved the way for the EU Taxonomy.[1] The EIB is thereby actively shaping the international discussion on sustainable finance.
In addition to the Bank’s work within the EU, the EIB signed a partnership with the Global Centre on Adaptation (GCA) in 2021 on accelerating action on climate change adaptation. The EIB, through its membership of the Climate Resilience and Adaptation Finance Technology Transfer Facility, also works on de-risking investments in innovative adaptation solutions alongside the private sector.
The EIB actively engages other institutions on climate change and Paris alignment of development finance. This is demonstrated by the partnerships the EIB has established with peers for enhanced cooperation in climate change, including with the ADB, the AfDB, the AIIB, the EBRD and the IDB. In the broader PDB environment, the EIB supports the organisation of the Finance in Common Summits (FiCS).
Recommendations:
- As the largest climate financier within the PDB system, the EIB can and should do more to further promote the uptake of climate finance within the PDB system globally. As the EIB expands its presence abroad, it should consider further expanding and promoting its offer of technical assistance and advisory service best practices, as it has started to do already with initiatives such as the Global Green Bond Initiative. This should be a central aspect of the priority of developing partnerships that EIB President Nadia Calvino has called for in the EIB’s work.
- The EIB, leveraging its central role within the European public bank ecosystem and in line with the Team Europe approach, should strengthen support for European National Development Banks (NDBs) to scale up Paris aligned investments and achieve the EU’s 2040 emissions reduction targets. Drawing inspiration from the IDB-ALIDE initiative in Latin America – which has provided capacity building, technical assistance, and performance-based incentives to support Paris alignment – the EIB could establish a platform with the Association of European Development Finance Institutions (EDFI) to promote cohesive, climate-friendly investments and enhance collaboration across Europe.
[1]The EU Taxonomy is a classification system for sustainable economic activities and is intended to be applicable to both EU and non-EU contexts.
Last Update: April 2025