EBRD engages in its first multi-donor partnership to accelerate climate action

02 / 11 / 2021

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD) and partner governments have launched the High-Impact Partnership on Climate Action (HIPCA) today at COP26, the United Nations conference in Glasgow that is critical for global action against climate change.

The new partnership is a pioneering effort by the EBRD and was developed in collaboration with Austria, Finland, the Netherlands, Switzerland, the TaiwanICDF (International Cooperation and Development Fund) and the United Kingdom.

Its primary objectives are to unleash investments and solutions that reduce or prevent greenhouse gas emissions, strengthen resilience and reduce vulnerability to climate change, and protect the environment.

In the EBRD regions, in line with the Bank’s Green Economy Transition approach for 2021-25, the partnership will work across eight thematic areas. These areas include energy systems; sustainable food systems; green financial systems; cities and environmental infrastructure; and natural capital. They also include cross-cutting themes: climate adaptation and resilience; just transition; and gender and economic inclusion.

This is the EBRD’s first multi-donor partnership tackling climate change and environmental degradation. It builds on the Bank’s unique business model, which combines financing with policy engagement and technical assistance, and acts as a conduit to unlock the right market conditions, mobilize co-financing and draw in the private sector.

EBRD President Odile Renaud-Basso said “The EBRD has set itself the ambitious target of achieving a green finance ratio of more than 50 per cent of the Bank’s annual investment by 2025 and of fully aligning its activities with the goals of the Paris Agreement by the start of 2023. Our new multi-donor partnership will play a critical role in supporting the EBRD in achieving these targets and enabling climate and environmental action across our region. We look forward to working with our key partners in implementing this ground-breaking initiative.”

Guy Parmelin, President of the Swiss Confederation, observed: “Switzerland is convinced that multilateral development banks such as the EBRD have a great role to play in moving the climate agenda forward. Switzerland is well advanced in the process of approving a contribution to the HIPCA fund. It is looking forward to working closely and efficiently with the EBRD over the years ahead to scale up climate finance and accelerate climate action and impact.”

James Cleverly, Minister for Middle East and North Africa in the Foreign, Commonwealth and Development Office of the United Kingdom, said: “COP26 is not just about realizing the climate commitments of individual governments, it’s about working together to enable all countries to meet global net-zero targets and reduce the impacts of climate change. To do this we must unlock public and private investment and push for innovative and green solutions. That’s why the UK is making a £50 million contribution to HICPA, whose work to mobilize funds and support green infrastructure projects in the Middle East and North Africa is vital for both economic growth and a greener future for the region.”

Ville Skinnari, Finland’s Minister for Development Cooperation and Foreign Trade, commented: “Finland is a longstanding partner of the EBRD. We are very pleased to be entering into a partnership under HIPCA, which combines our goals of unlocking market conditions, mobilizing financing and engaging the private sector to fight climate change.”

Sandor Gaastra, Director-General of Climate and Energy at the Ministry of Economic Affairs and Climate Policy of the Netherlands, noted: “The southern and eastern Mediterranean region is highly vulnerable to climate change and is witnessing rapid rates of environmental degradation. The Netherlands is delighted to be joining the High-Impact Partnership on Climate Action to support climate change mitigation and adaptation efforts across the region and looks forward to engaging in strategic cooperation on climate issues with the EBRD and donors.”

Harald Waiglein, Director General for Economic Policy, Financial Markets and Customs Duties at the Austrian Ministry of Finance, noted: “One of the biggest challenges in the EBRD regions is to create the right investment climate for private finance in addressing climate change. Climate action needs to be mainstreamed in financial and fiscal decisions at every level, enabling private investment and financial-sector development that enhance mitigation, adaptation and resilience. Austria therefore strongly supports the EBRD and HIPCA in order to facilitate much-needed private investment as well as structural and legal reforms in a green and just transition that is the basis of sustainable growth.”

Timothy T.Y. Hsiang, Secretary General of the TaiwanICDF said “The EBRD regions provide significant opportunities for clean growth and for ensuring the transfer of new technologies that help preserve the environment. We welcome HIPCA as it helps catalyze investment and increase impact. We look forward to working with the EBRD and others to tackle the climate challenge and are delighted to support HIPCA.”

Working with donors is an essential part of the EBRD’s business model as it enables the Bank to help countries accelerate their green agenda to the benefit of all citizens, businesses and the environment. The EBRD welcomes new public and private donors to join this critical partnership.