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.
|Prices align with the High-Level Commission on Carbon Prices (HLCCP) and are applied to all projects above the emission threshold.
|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
|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.