European Bank for Reconstruction and Development

Level of climate finance transparency

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.

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Paris alignmentReasoning
Some progressTransparency of financial intermediary lending needs improving.
Climate Finance DataProvides adequate project level data to the OECD and in its sustainability report.
Financial intermediary lendingEnvironmental assessments of high-risk sub-projects published and some subprojects in green financing facilities disclosed.

Explanation

Transparency of climate finance data

The EBRD has provided project level climate finance data in its sustainability report since 2018, this is in PDF format. The release in PDF format makes it difficult to do in depth analysis. The EBRD provides an adequate level of information in its submission to the OECD-DAC (Development Assistance Committee) climate-related development finance database. 

Transparency of financial intermediary lending

The EBRD requires all high-risk ‘Category A’ subprojects financed through a financial intermediary to be reported to the bank. Information on the environmental and social risks of any sub-project referred to the EBRD and the proposed mitigation measures to address project risks must also be publicly disclosed. There is not a disclosure requirement for all subprojects.

Project summary documents for financial institution lending are available on an EBRD portal and provides some details of the finance. Sub-projects are not disclosed on this portal. However, some of the Green Economy Financing Facilities (GEFF) of the EBRD have subproject disclosure on their individual websites. For example, the Western Balkans website has a list (and map) of subprojects financed along with the sector and financing amount. The Turkish Mid-size Sustainable Energy Financing Facility (MidSEFF) also discloses emission reduction of some sub-projects. This is best practice amongst the MDBs. E3G recommends a centralised version of this for all intermediary lending.

Recommendation: We recommend that the MDBs consider disclosing all their projects and subprojects that contribute to climate finance reported in the MDB joint report.   

Recommendation: We recommend that all the MDBs consider disclosing their operations against a version of the EU Sustainable Finance Taxonomy that has been adapted for the region the bank operates in. This is because it is science based and is reviewed regularly to reflect changes in technology and science. 

Reporting on Paris alignment

It should be noted that the EBRD has also made the following commitments in terms of reporting on Paris alignment:

“From 2022 [EBRD will conduct …]: internal reporting on alignment based on MDBs Paris Alignment disclosure framework; annual reporting to Board; external reporting in line with first internal progress report.”

Last Update: November 2020

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