EBRD puts decarbonisation at centre of new energy sector strategy

(eceee news, 13 Dec 2018) In its new five-year energy sector strategy, the European Bank for Reconstruction and Development (EBRD) has closed the door on coal mines and coal-fired power plants. puts decarbonisation at centre of new energy sector strategy

On 12 December, the EBRD Board of Directors approved a new energy sector strategy that targets the creation of an energy sector which delivers clean, secure and affordable energy for all.

The strategy for the next five years emphasises the scaling-up of investment in renewables, supporting the integration of energy systems, promoting the switch to cleaner and more resilient energy sources and facilitating electrification as a means to clean the economies where the Bank invests, which include some of the least energy-efficient and most polluting economies and cities in the world.

According to the EBRD, the strategy confirms that the Bank will no longer finance thermal coal mining or coal-fired electricity generation. The Bank will also stop funding any upstream oil exploration, and will not finance upstream oil development projects except in rare and exceptional circumstances, where such investments reduce greenhouse gas emissions.

The new strategy sets the strategic direction of the EBRD’s investments and policy dialogue in the energy sectors of the 38 economies where it works for the period 2019-2023. It covers the Bank’s activities in two areas:  electricity generation, transmission, distribution, storage and supply; and hydrocarbon extraction, processing, transportation, distribution, storage and supply. The strategy focuses on the generation and supply of energy and thus complements the EBRD’s efforts in demand-side energy efficiency, EBRD writes.

From January 2019, the EBRD is also adopting a Shadow Carbon Pricing Methodology for use in EBRD projects with significant greenhouse gas emission footprints.

The EBRD’s approach, including the range of shadow prices will be made available in early 2019.

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eceee news, 12 Dec 2018: EBRD puts decarbonisation at centre of new energy sector strategy