How the European Bank for Reconstruction and Development Can Shift Millions From Fossil Fuels to Clean Energy Through the Glasgow Commitment

The policy brief urges the EBRD to join the Glasgow Statement on International Public Support for the Clean Energy Transition. It estimates that the EBRD could redirect an average of EUR 741 million in annual fossil fuel financing toward clean energy, potentially increasing its annual clean energy investments by 50%. The authors recommend a robust fossil fuel exclusion policy, specifically targeting gas infrastructure to avoid carbon lock-in, and suggest either a blanket exclusion or strict screening criteria for gas power generation.

• The EBRD has the potential to redirect an average of EUR 741 million in annual investments from fossil fuels to clean energy. Between 2018 and 2021, the Bank invested an average of EUR 1.4 billion per year in clean energy and EUR 741 million per year in fossil fuel energy.
• Implementing the Glasgow Statement would allow the EBRD to increase its average annual clean energy financing by 50%, raising it from EUR 1.4 billion to EUR 2.1 billion.
• The EBRD's current Energy Sector Strategy (ESS) is not fully aligned with the Glasgow Statement because it lacks exclusions for upstream gas and midstream and downstream oil and gas investments, although it already excludes thermal coal mining, coal-fired power plants, and most upstream oil exploration.
• The document argues against using natural gas as a transition fuel, citing its climate impact from methane leaks and the fact that it often displaces cost-competitive renewable energy in the energy, buildings, and industry sectors.
• Investment in gas infrastructure can negatively impact development priorities; for example, Tunisia's need to double government spending in 2022 for fuel imports contributed to a credit rating downgrade to "CCC" by Fitch, increasing the cost of development finance.
• The authors propose two policy options for gas exclusion: a 'blanket exclusion' of all gas projects (similar to Swedfund and AFD) or 'limited exemptions' for gas power generation based on strict screening criteria (similar to the UK, Denmark, and FMO).
• The brief warns that 'abated' fossil fuels using carbon capture and storage (CCS) are not a highly effective tool for 1.5°C alignment due to high costs and technological limitations, and recommends that any exceptions be limited to proven CCS rather than 'CCS-ready' plants.

APA

Jones, N., & Madereel, E. (2022). How the European Bank for Reconstruction and Development Can Shift Millions From Fossil Fuels to Clean Energy Through the Glasgow Commitment. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-10/ebrd-shift-fossil-fuels-clean-energy.pdf

Chicago

Jones, Natalie, and Enrique Madereel. How the European Bank for Reconstruction and Development Can Shift Millions From Fossil Fuels to Clean Energy Through the Glasgow Commitment. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-10/ebrd-shift-fossil-fuels-clean-energy.pdf.

Wikipedia

{{cite report |last1=Jones |first1=Natalie |last2=Madereel |first2=Enrique |title=How the European Bank for Reconstruction and Development Can Shift Millions From Fossil Fuels to Clean Energy Through the Glasgow Commitment |publisher=International Institute for Sustainable Development |date=October 2022 |url=https://www.iisd.org/system/files/2022-10/ebrd-shift-fossil-fuels-clean-energy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jones2022how, author = {Jones, Natalie and Madereel, Enrique}, title = {{How the European Bank for Reconstruction and Development Can Shift Millions From Fossil Fuels to Clean Energy Through the Glasgow Commitment}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = oct, url = {https://www.iisd.org/system/files/2022-10/ebrd-shift-fossil-fuels-clean-energy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }