To promote sustainable development and to protect and improve the environment, five European Multilateral Financing Institutions (MFIs) have agreed to a common approach to environmental management associated with the financing of projects. This approach to environmental management is based on the environmental principles, practices and standards of the European Union.
- The Council of Europe Development Bank,
- The European Bank for Reconstruction and Development,
- The European Investment Bank,
- The Nordic Environment Finance Corporation and
- The Nordic Investment Bank
will promote responsible stewardship and provide a mechanism for engaging with project sponsors in addressing environmental issues. This will also allow the MFIs to better manage credit and project risk related to the environment.
The European Principles for the Environment (EPE) encompass the EC Treaty guiding environmental principles and the practices and standards of EU environmental legislation.
The five MFIs' initiative, endorsed by the DG Environment of the European Commission, affirms the strong credentials of the EU in the field of environmental management. It is a basis for further harmonization of approach, as well as an invitation for additional parties to adopt the same principles.
The European Principles for the Environment will cover the countries of operations of each signatory institution, and in particular the Member States of the EU, the countries of the European Economic Area, the EU Acceding, Accession, Candidate and potential Candidate countries.
In all other countries, projects should comply with EPE subject to local conditions. In the process the MFIs will help to build up national capacity to meet and enforce the requirements of EPE.