The Climate Bonds Initiative called today for the "greening" of the European Investment Bank (EIB). The call was in response to the EIB's push this week to become the main route for EU climate cash to the developing world.
Speaking in London's Canary Wharf, Climate Bonds Initiative Chair Sean Kidney said: "We support the bank becoming a conduit for European Union climate financing; climate investment banks will be a key part the financing of a rapid transition to a low-carbon economy".
Mr Kidney added: "The Bank has done much good work already in climate finance; but this needs to go further. The scale of the challenge before us means that the EIB needs to shed its carbon-sector investing and re-direct all its resources to helping nations make a rapid transition to a low-carbon economy."
"That means phasing out the EIB's exposure to programs that are funding high-emission activities, like coal-fired power plants, and re-focus on climate change finance. It will then be a suitable channel for climate finance around the world."
"By leveraging all available funds, not just a portion, and entering into partnerships with private investors, the EIB could mobilise the capital needed to build clean rather than dirty energy around the world."
Mr Kidney added that the EIB could also wholesale climate bonds, manage developing world project guarantee pools for the EU, and set up leveraged funds, such as securitized renewable energy asset funds.
