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 aligned||Prices align with the High-Level Commission on Carbon Prices (HLCCP) and are applied to all projects above the emission threshold.|
The European Bank for Reconstruction and Development (EBRD) does apply a shadow carbon price. The table below provides a summary of how it is applied across bank operations.
|Which projects subject to greenhouse gas (GHG) assessment||Projects which increase net emissions by 25kCO2e |
Gross emissions over 100ktCO2e.
|Which projects apply shadow carbon pricing||All projects.|
|Price level||Will use the high and low values from the range of prices recommended by High Level Commission on Carbon Prices|
|How shadow carbon price is used||Shadow Carbon Price ‘will be an important input to decision making’.|
Uses levelised cost of energy (LCOE) in assessing projects, suggesting the carbon price is likely incorporated into a project baseline.
The Bank’s methodology for the assessment of projects with high greenhouse gas emissions applies a shadow carbon price to the gross emissions linked to the project and also compares its social value against a range of low carbon alternatives.
|What is it compared to?||Identify all other realistically available options to meet the same energy needs as the proposed project. Slightly unclear what this means for projects outside the energy sector.|
|Are scope 3 emissions included?||Scope 3 greenhouse gas emissions may be taken into consideration where relevant (e.g. energy pipelines).|
The graph below shows how the level of carbon pricing at the bank compares with those of the High-Level Commission on Carbon Prices (HLCCP). The HLCCP prices only extend to 2030.
Recommendation: The EBRD should apply a carbon price scenario to assess alignment with limiting warming to below 1.5°C, alongside the other MDBs.
Last Update: November 2020