European Development Finance Institutions Announce Joint Ambitions for Climate Action

EDFI group outlines shared commitments to phase out fossil fuels and mobilise private sector climate finance, aligning with Paris Agreement and high disclosure standards.

05-11-2020

European Development Finance Institutions Announce Joint Ambitions for Climate Action

The Association of European Development Finance Institutions (EDFI), which has a combined $50 billion under management in emerging and frontier markets, has announced that its 15 publicly-owned member institutions will align all new financing decisions with the objectives of the Paris Agreement by 2022 and will ensure that their portfolios achieve net zero emissions by 2050 at the latest.

EDFI member institutions will immediately cease new coal or fuel oil financing and will limit other fossil fuels, such as selective investments in gas-fired power generation, to financing consistent with the objectives of the Paris Agreement until generally excluding them by 2030 at the latest. The new commitment includes direct investments, indirect investments made through investment funds and dedicated lending via financial institutions.

European Development Finance Institutions Announce Joint Ambitions for Climate Action

As taxpayer funded organisations, we are committed to promoting green growth, climate adaptation and resilience, nature-based solutions, access to green energy and a just transition to a low-carbon economy.

Søren Peter Andreasen, CEO of EDFI

EDFI member institutions are determined to build on their strong track-record in climate finance and mobilise private sector climate finance by holding themselves to ambitious individual targets and reporting on their progress, while also delivering on their core development missions.

In its statement today, EDFI said: “A significant and progressive alignment of private capital flows to developing countries will be required to reach the UN Sustainable Development Goals by 2030 and to implement the Paris Agreement. Over the past five years, the European DFIs have committed €8 billion to climate finance in low and middle-income countries. Now, in the lead-up to COP 26, and as countries around the world strive to achieve a sustainable recovery from the Covid-19 pandemic, it is more important than ever that European DFIs set a collective example for investors in developing markets.”

Søren Peter Andreasen, CEO of EDFI, said: “As taxpayer funded organisations, we are committed to promoting green growth, climate adaptation and resilience, nature-based solutions, access to green energy and a just transition to a low-carbon economy. Today’s announcement underlines that commitment. DFIs are diverse institutions that will follow different paths and use their best efforts to implement these commitments, with some institutions going even further in certain areas and others needing more time for implementation. By working together on these joint ambitions, European DFIs will take full account of their effects on the planet without compromising on their development impact.”

EDFI members will also make climate-related financial disclosures in line with the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”).

About EDFI

EDFI is the Association of 15 bilateral European development finance institutions that invest in the private sector in emerging and frontier markets to create jobs, boost growth, and fight poverty and climate change. Since EDFI was set up in 1992, its member institutions have financed app. 15,000 projects, and they now manage a combined investment portfolio of EUR 46 billion across financial services, clean energy, industry and many other sectors in more than 100 countries. EDFI’s member institutions include BIO (Belgium), BMI-SBI (Belgium). CDC Group (UK). COFIDES (Spain), KfW-DEG (Germany), Finnfund (Finland), FMO (Netherlands), IFU (Denmark), Norfund (Norway), OeEB (Austria), Proparco (France), SIFEM (Switzerland), Simest (Italy), SOFID (Portugal), and Swedfund (Sweden).

Press contacts

James Brenton
Programme Manager, Knowledge & Innovation
James.brenton@edfi.eu


+32 2 230 23 69

Monika Hoegen
Communications specialist
Monika.hoegen@edfi.eu
+32 2 230 23 69

More news

Greener money

 News

Greener money

31-08-2021

Money is getting greener. The superlative in sustainable investing today is "impact investing". A growing global market that is already worth more than $700 billion.

Article originally appeared in MT Magazine in Dutch.

Read more
Belgian impact fund focused on the Indian rural economy hits first close of USD 60 M

 News

Belgian impact fund focused on the Indian rural economy hits first close of USD 60 M

26-07-2021

A group of international investors announce the successful first closing of the Incofin India Progress Fund (IPF) with USD 60 million of commitments. The fund will make private equity investments in the Indian agri food value chain and in financial inclusion for rural entrepreneurs in India. The committed capital comes from a diverse set of private and institutional investors including Korys, CDC, Proparco, the Belgian Investment Company for Developing Countries (BIO), the SDG Frontier Fund, the King Baudouin Foundation and several Belgian family offices.

Read more
SDB bank will issue 10% shares to Belgian Investment Company for Developing Countries (BIO)

 News

SDB bank will issue 10% shares to Belgian Investment Company for Developing Countries (BIO)

09-07-2021

The Belgian Investment Company for Developing Countries (BIO) agreed with SDB bank, a pioneering provider of financial services, to take up a 10% share of the bank, amounting to Rs. 925 million at Rs. 51.50 a share, via SDB bank’s Secondary Public Offering (SPO).

Read more