How the European Bank for Reconstruction and Development Can Shift Millions From Fossil Fuels to Clean Energy Through the Glasgow Commitment

At the 26th Conference of the Parties (COP 26) of the United Nations Framework Convention on Climate Change, 39 governments and public finance institutions signed the Glasgow Statement on International Public Support for the Clean Energy Transition, a joint commitment to end international public finance for fossil fuels and instead prioritize public finance for clean energy. COP 27 is an opportunity for new signatories to join the Glasgow Statement.

Building on the report Turning Pledges Into Action: How Glasgow Statement Signatories Can Meet Their Commitment to Shift International Public Finance Out of Fossil Fuels and Into Clean Energy by the End of 2022, this brief analyzes the opportunities and challenges for the European Bank on Reconstruction and Development (EBRD) to join and implement the Glasgow Statement. The EBRD has demonstrated growing leadership on climate action through its policy commitments, including its pledge to align all of its activities with the Paris Agreement by the end of 2022. The EBRD is well equipped to implement the Glasgow Statement through the upcoming review of its energy strategy, scheduled to take place directly after COP 27.

It has never been more critical to act to end international public finance for fossil fuels. Russia’s invasion of Ukraine and the resulting global energy crisis, including the gas supply crunch in Europe, are a clear reminder of the insecurity, volatility, and unsustainability of fossil fuel-dominated energy systems. Many of the EBRD’s countries of operation depend on fossil fuel imports—a key concern that must be addressed as a top priority in the coming years. The EBRD is playing a valued role in crisis response in its countries of operation. In the months and years ahead, the only sustainable way out of the crisis is a faster transition from fossil fuels toward reliable and affordable clean energy and energy efficiency.

The brief identifies good practices that the EBRD can draw on in designing a robust policy excluding international public finance for fossil fuels. It highlights that by joining and implementing the Glasgow Statement, the EBRD could directly shift EUR 741 million in international public finance for fossil fuels toward a clean and just energy transition each year.

The brief recommends that the EBRD:

• Sign on to the Glasgow Statement by COP 27.
• In the following year, implement a robust fossil fuel exclusion policy via its upcoming energy policy review, including for indirect support.
• Use strict exclusion rules that do not allow for fossil fuel lock-in, including for gas power.
• Develop concrete strategies for shifting finance from fossil fuels to clean energy and further increase clean energy support for the private sector.