European Development Finance Institutions remain firmly committed to supporting the transition towards sustainable, climate-resilient, and nature-positive economies.
This text is a chapeau text to the pre-existing EDFI Statement on Climate and Energy.
Climate change is an undeniable and accelerating global reality. Its widespread impacts threaten ecosystems, livelihoods, and economies, particularly in the most vulnerable regions where development finance plays a critical role. Progress in development can be quickly undone by the impacts of the climate and nature crisis.
Recognising this, OeEB and its EDFI (European Development Finance Institutions) counterparts remain firmly committed to supporting the transition towards sustainable, climate-resilient, and nature-positive economies.
Building on the 2020 EDFI Climate and Energy Statement, which affirmed alignment with the objectives of the Paris Agreement, EDFI members now renew and deepen their collective commitment to climate action. In 2024, the EDFI climate finance committed portfolio reached €18.7 billion, which is 31% of its total portfolio.
This next phase marks an acceleration in our journey from commitment to transformation — a recognition that achieving a just and lasting transition requires action across all dimensions of the climate and nature agenda. EDFIs seek to collectively increase the share of climate finance to over 40% of total new annual commitments over the next five years.
EDFI members will continue to scale up climate finance, ensuring that capital is channelled towards activities that mitigate greenhouse gas emissions and advance the global shift to net zero. However, mitigation alone is not sufficient. EDFI institutions recognise the equal importance of financing adaptation, resilience, and biodiversity. Supporting businesses and economies to adapt to a changing climate, strengthening economic and environmental resilience, and protecting and restoring natural systems are all integral to achieving sustainable development outcomes.
To deliver on this agenda, EDFI members will:
- Intensify investment in renewable energy, energy efficiency, and solutions that accelerate decarbonisation;
- Increase financing for adaptation and resilience initiatives that support businesses and help safeguard vulnerable populations and economies;
- Continue to integrate climate risk and Paris alignment assessments into investment decisions;
- Integrate biodiversity conservation and nature finance into investment decisions and portfolio management;
- Ensure that climate relevant investments create new business opportunities and generate additional jobs; and
- Collaborate closely with public and private partners to mobilise additional capital and foster systemic change in line with the Paris Agreement and the Sustainable Development Goals.
EDFI's collective ambition is to ensure that development finance continues to be a catalyst for transformative climate action. Through partnership, innovation, and accountability, EDFI members will pursue a climate and nature agenda that drives inclusive growth, strengthens resilience, and safeguards the planet for future generations. EDFI will report annually on its progress on climate finance, while further strengthening our internal partnership structures to closely monitor this acceleration of progress towards our common ambition.