Policy comments: EBRD's Sustainable Energy Initiative 3

In recent years, the European Bank for Reconstruction and Development has paid increased attention to sustainable energy issues, enegry efficiency in particular. At the same time, the bank's Sustainable Energy Initiative (SEI) criteria need to be strengthened in line with climate science and EU policy.

The European Commission "Roadmap for moving to a low-carbon economy in 2050 sets the goal of becoming a resource-efficient, renewables-based economy by 2050. In order to achieve this, a near-total decarbonisation of the EU energy sector is needed by 2050, as well as that of the industry and residential sectors. As most energy infrastructure built now will still be operating in 2050, the EBRD needs to orient its SEI towards this goal instead of being satisfied with relative increases in energy efficiency.

We provided more detailed suggestions in our paper Ten ways to improve the EBRD's Sustainable Energy Initiative

The EBRD's response to our comments (pdf) from March 28, 2012 shows hopeful signs that a few of our (and the EBRD Evaluation Department's) comments are starting to be taken on board such as the need for improved reporting on actual results rather than predicted ones. However the bank is still insisting on financing fossil fuel projects, thus failing to recognise its role as an institution that should lead both new markets and the fight against climate change.