- EBRDs Green Economy Transition (GET 2021-25) targets over 50% of annual business as green finance and 25-40 Mt of net GHG cuts over 2021-25.
- Since January 2023, all new EBRD investments and policy work must be Paris-aligned on mitigation and adaptation across direct, intermediary and other finance (plus separate internal operations).
- In 2024, EBRD committed 2.7bn in green finance (58% of investments) with about 10.9 MtCOe of expected annual emissions reductions.
- Scrutiny remains over fossil-fuel exceptions (notably mid/downstream gas and EU taxonomy carve-outs), transparency on portfolio gross/scope-3 emissions, and consistency with a 1.5C pathway.
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The EBRD’s GET 2021-25 framework represents a significant evolution in multilateral development bank climate policy. Its dual targets—over 50 % green financing and 25-40 million tonnes of cumulative net GHG emissions reduction over five years—are both ambitious benchmarks. As reported, EBRD exceeded the green-finance threshold in 2021 (51 % of €10.4 billion ABI) but the emission reduction target remains challenging, given its split between mitigation and added emissions in fossil fuel–oriented projects.,
The methodology for Paris alignment is now comprehensive: all new activities since January 2023 are subject to it; investments are categorized into direct capital projects, financial intermediaries, and other types; internal operations are also included under a separate framework. The methodology has been updated (most recently August 2025), with public consultation stages in 2021-22 and 2024.,
On fossil fuels, the EBRD has narrowed its exposure: upstream oil and production of thermal coal already excluded; new alignment methodology from December 2022 further excludes upstream gas and places stricter criteria on downstream/midstream oil or gas projects. Nonetheless, some fossil fuel projects may still qualify under “automatically aligned” provisions if they meet EU taxonomy standards, raising concerns among watchdogs about potential for significant loopholes.
Recent performance data show meaningful progress: green project signings in 2024 reached €9.7 billion (58 %); expected annualized emissions reductions ≈10.9 MtCO₂e; renewable capacity additions (7.9 GW) and energy savings (73.1 million GJ) are sizable. This suggests EBRD is well on its way towards the GET goals, but these are ex-ante estimates, and gross portfolio emissions (especially scope-3) are not yet fully disclosed.
Strategic implications: the EBRD is positioning itself among the leading MDBs in climate finance and alignment. For investors and clients, rising expectations around alignment and disclosure heighten reputational and financial risks for non-compliant activities. Operationally, compliance will require strong internal governance, rigorous assessments, and robust transition plans—particularly in banking and industrial clients. There is also heightened scrutiny from civil society and regulators around fossil fuel exclusions and adherence to 1.5 °C pathways.
Open questions include how EBRD will report on gross emissions across its portfolio; how the criteria for exceptions (especially under EU taxonomy) will be enforced; whether the emission reduction targets are consistent with global science to limit warming to 1.5 °C; how consistent implementation will be across regions with varying national commitments; and how return-on capital, risk, and cost of capital will shift in light of changing alignment requirements.
Supporting Notes
- Under GET 2021-25, EBRD aims for more than 50 % of its annual business volume to be green financing and net reduction in GHG emissions of 25-40 million tonnes over the period.
- By 2024, EBRD committed €9.7 billion in green finance, representing 58 % of its investments with expected emissions reductions of ~10.9 Mt CO₂e yearly.
- Since January 1, 2023, all new EBRD activities are aligned with both mitigation and adaptation goals under the Paris Agreement.
- Alignment methodology splits financing into direct investment, indirect via financial intermediaries, and “other” financing; it also includes internal operations under separate governance.
- The updated methodology (August 2025) for green finance attribution supersedes previous guide, with public comment periods for both attribution and alignment methodologies (2021-22; March 2024).
- Fossil fuel policy tightening: upstream oil and coal already excluded; new methodology excludes upstream gas; mid-/downstream oil and gas allowed only under multiple stringent criteria; EU taxonomy exception raises concerns.
- E3G notes that only direct recipient projects exceeding 20 kt CO₂e/year are now assessed (a much lower threshold) and that EBRD tracks emissions at portfolio level via ex ante estimates, but doesn’t yet aggregate gross emissions or full scope-3 metrics.