African Development Bank

Non-fossil to fossil energy ratio and scaling up climate investment in all sectors

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 progress AfDB financed fossil fuel projects between 2016-2018 so cannot be considered Paris aligned, but for every $1 the AfDB provides to fossil fuels, $7.4 goes to renewables & $11.8 goes to Transmission & Distribution (T&D) between 2016-2018

Explanation

The African Development Bank (AfDB) has one of the highest ratios of renewable energy lending compared to fossil fuel lending of the seven main MDBs, primarily due to very low fossil fuel financing in 2016 and 2017, with an uptick in 2018.

For every $1 the AfDB provides to fossil fuels, $7.4 goes to renewables & $11.8 goes to T&D between 2016-2018.

Mitigation financing has remained constant and adaptation financing has seen a large uptick. In 2017, the AfDB stated that 100% of energy lending went towards renewable energy.

 
OECD (2018) OECD DAC Recipient Perspective – Climate Finance
Oil Change International (2018) Shift the Subsidies database
Joint Report on Multilateral Development Banks Climate Finance (2019,2018,2017,2016,2015,2014,2013)
Last Update: November 2020

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