European DFIs vow to cease fossil fuel investments by 2030
The Association of European Development Finance Institutions (EDFI), which has a combined $50 billion under management in emerging and frontier markets, has announced that its 15 members will phase out fossil fuel investments by 2030.
EDFI's publicly-owned member institutions will exclude new fossil fuel financing, directly or indirectly through new commitments to investment funds and dedicated lending via financial institutions in coal prospection, exploration, mining or processing; oil exploration or production; standalone fossil gas exploration and/or production; transport and related infrastructure primarily used for coal for power generation; crude oil pipelines; oil refineries; construction of new or refurbishment of any existing coal-fired power plant (including dual); construction of new or refurbishment of any existing HFO-only or diesel-only power plant producing energy for the public grid and leading to an increase of absolute GHG emissions; or any business with planned expansion of captive coal used for power and/or heat generation.
They will also and limit other fossil fuels, such as selective investments in gas-fired power generation, to financing consistent with the objectives of the Paris Agreement until generally excluding them by 2030 at the latest.
Members will also make climate-related financial disclosures in line with the recommendations of the Task Force on Climate-related Financial Disclosures.
Members include the UK's CDC, Netherlands-based FMO, Germany's KfW and DEG, Norway's Norfund, and France's Proparco.
