Climate action

Human industrial activity has already caused about 1˚C of global warming. At the current rate of emissions, the world will warm on average by around 3.5 to 4˚C by the end of the century. This would wipe out close to 70% of all plant species, around half of all mammals and more than a third of birds. The life-threatening impact of climate change on health through air pollution, heatwaves and risks to food security is already being felt.

This disruption is not inevitable. Policies already adopted and pledges made by countries are expected to limit the warming to below 3.2˚C by the end of the century. This is clearly not enough. Under the Paris Agreement, nearly all governments worldwide agreed to hold global warming well below 2°C and to pursue efforts towards limiting it to 1.5°C.

 

Adjusted economic and financial rates of return

When appraising the economic case for a project resulting in a significant change of greenhouse gas emissions (GHG) we incorporate an economic cost of carbon. For high-emitting sectors (i.e. energy, industry, transportation), we require a higher economic rate of return.

Carbon footprint exercise

An assessment of greenhouse gas (GHG) emissions of the investment projects we finance is carried out based on sector-specific methodologies. We publish project level data on our Public Register and aggregated data for each year’s financing in our Sustainability Report.

Emissions performance standard

For all fossil fuel generation projects, a specific emissions performance standard is applied in order to screen out investments whose carbon emissions exceed a threshold level.

Climate change risk and vulnerability

For projects, sectors and areas particularly vulnerable to climate change impacts, we require the promoter to consider climate risks and to incorporate adaptation measures into project design and operation. We are rolling out a climate risk management system as part of our climate strategy implementation.

Climate finance tracking

Transparency and credibility are key in mitigation finance reporting. In 2015, the EIB and other multilateral development banks (MDBs), as well as the International Development Finance Club (IDFC), established a set of common principles, definitions and guidelines for climate mitigation finance tracking.

Together on climate

As the EU’s climate bank, the European Investment Bank works with companies, think tanks, non-profit organisations, public authorities and other international financial institutions to put EU climate goals into practice both outside and inside Europe. Discover how

EIB’s internal carbon footprint

In addition to measuring the carbon footprint of all our investment projects, we are also committed to reducing our own carbon footprint as one of our corporate responsibility objectives.