Paris-aligned or Paris-misaligned? Fossil fuel financing under the European Bank for Reconstruction and Development's Paris alignment methodology

The EBRD's new Paris alignment methodology, effective January 1, 2023, expands exclusions to include upstream gas and most midstream and downstream oil. However, it maintains a set of cumulative criteria for midstream and downstream gas projects and allows an automatic alignment exception for projects meeting EU taxonomy criteria. The author argues that to align with the 1.5°C goal and the Glasgow Statement, the EBRD must completely exclude midstream and downstream gas infrastructure.

• The EBRD's Paris alignment methodology, released in December 2022 and applicable to projects from January 1, 2023, expands fossil fuel exclusions to include upstream gas and most midstream and downstream oil, except for rare cases of emissions reductions or environmental remediation.
• Midstream and downstream gas projects are not excluded outright but must meet cumulative criteria, including being in a country with a credible decarbonization commitment, being part of a credible low-carbon strategy, having a methane leakage control plan, and not being ruled out by the country's nationally determined contribution (NDC).
• A significant exception exists where any investment meeting the EU taxonomy for sustainable activities' criteria for a "substantial contribution" to climate change mitigation is automatically deemed Paris-aligned, bypassing the EBRD's specific gas criteria.
• Between 2018 and 2021, the EBRD's financial activity included EUR 5.6 billion invested in clean energy and EUR 2.9 billion invested in fossil fuel energy.

APA

Jones,, N. (2023). Paris-aligned or Paris-misaligned? Fossil fuel financing under the European Bank for Reconstruction and Development's Paris alignment methodology. International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/paris-aligned-or-paris-misaligned-ebrd

Chicago

Jones,, Natalie. Paris-aligned or Paris-misaligned? Fossil fuel financing under the European Bank for Reconstruction and Development's Paris alignment methodology. International Institute for Sustainable Development, 2023. https://www.iisd.org/articles/policy-analysis/paris-aligned-or-paris-misaligned-ebrd.

Wikipedia

{{cite report |last1=Jones, |first1=Natalie |title=Paris-aligned or Paris-misaligned? Fossil fuel financing under the European Bank for Reconstruction and Development's Paris alignment methodology |publisher=International Institute for Sustainable Development |date=21 March 2023 |url=https://www.iisd.org/articles/policy-analysis/paris-aligned-or-paris-misaligned-ebrd |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jones2023parisaligned, author = {Jones,, Natalie}, title = {{Paris-aligned or Paris-misaligned? Fossil fuel financing under the European Bank for Reconstruction and Development's Paris alignment methodology}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = mar, url = {https://www.iisd.org/articles/policy-analysis/paris-aligned-or-paris-misaligned-ebrd}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }