The Association of European Development Finance Institutions (EDFI), with combined assets under management of $50 billion, on Thursday, said that they would no longer lend money to fossil fuel projects starting from 2030. It also said that future lending plans would be made to meet terms under the Paris climate accord by 2022. It will also ensure that all investment portfolios must achieve net-zero carbon emissions by 2050 at the latest.
EDFI CEO Søren Peter Andreasen said that as taxpayer-funded institutions, European DFIs are committed to promoting nature-based solutions, green growth, access to green energy, climate adaptation, and a transition toward low-carbon energy. EDFI consists of 15 government-backed members such as Britain’s CDC Group, Norway’s Norfund, and France’s Proparco. They provide direct and indirect investment in sectors such as healthcare and infrastructure, especially in low- and middle-income economies.
The move came a week before the first meeting of 450 global DFIs in France to discuss efforts in boosting sustainable development and fighting against climate change. Pressing issues that will be discussed include investment policy in coal projects in Asia. The meeting will be a test for the countries’ commitment to being aligned with the Paris climate agreement.
