COP28: New solutions for clean technologies and a just transition worldwide

ByEuropean Investment Bank

COP28: New solutions for clean technologies and a just transition worldwide

The European Investment Bank (EIB) is set to join the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates from 30 November until 12 December 2023. Together with global partners, the Bank will present tangible solutions for addressing the climate and environmental emergency.

The EIB Group (European Investment Bank and European Investment Fund) will announce new projects for groundbreaking energy technologies and climate adaptation as well as a pioneering approach for just transition and resilience projects worldwide. The EIB is also working closely with fellow multilateral development banks (MDBs) and the private sector to announce support at COP28 for countries in preparing and financing projects supported by long-term strategies for decarbonized, climate-resilient development.

Since 2019, the EIB has transformed itself into the EU climate bank, increasing annual green finance by more than 80% to over €36 billion and ending its support for unabated fossil fuel energy projects, including natural gas.

See also: Unveiling COP28: A critical meeting to address climate change

“The world is facing the consequences of climate change, with the most vulnerable in the developing world, who are least responsible for it, bearing the brunt of the climate crisis”, said EIB President Werner Hoyer. He added: “COP28 presents a crucial milestone for international climate action. We have to seize the opportunities and refuse to resign ourselves to the worst. We must come together and meet our partners on an eye-to-eye level to work on concrete solutions for climate resilience, phasing out fossil fuels, and scaling up clean energy capacity, through innovative technologies that offer green jobs and sustainable growth. I call on all our partners to work together in this endeavor.”

EIB Vice-President Ambroise Fayolle, responsible for climate action, environment, and development, added: “The EIB has heard the calls for multilateral development banks to increase the impact of their collective efforts in climate and environmental action. We are working with our fellow MDBs on ambitious initiatives to be announced at COP28. At the EIB, our Board of Directors just approved the mid-term review of our Climate Bank Roadmap, which confirms that the Bank has already exceeded its 50% green finance target for the second year in a row.”

EIB Vice-President Thomas Östros, responsible for energy investments, said: “The EIB welcomes the COP28 Presidency’s ambition to triple renewable energy capacity by 2030 and massively improve the energy efficiency of our homes, public buildings, and workplaces. We have extensive experience in supporting clean energy investments worldwide. We also support the EU position for COP28 that the transition to a climate-neutral economy will also require a global phase-out of unabated fossil fuels. Already in 2019, we were the first international financial institution to stop financing unabated fossil fuel energy projects. At COP28, we will join partners to announce innovative clean energy projects which present concrete solutions to help decarbonise our economies.”

EIB Vice-President Gelsomina Vigliotti, responsible for small and medium-sized enterprises and mid-caps and also Chair of the Board of Directors of the European Investment Fund, said: “In addition to climate change, European firms are facing multiple challenges amid pressing investment needs and increasingly stringent financial conditions. I look forward to sharing our experience at COP28 on how the EIB Group is working with the European Commission and partners to help businesses green their activities, build in climate risk assessment and support clean technology investments to support the objectives of the European Green Deal.”

Just transition and resilience

At COP28, EIB Global, the development arm of the EIB, will present its approach to support a just transition and just resilience worldwide. Addressing the socioeconomic impact of climate action policies and climate change itself is key to ensuring that nobody is left behind in the transition towards a net-zero, climate-resilient global economy.

The EIB has long supported the just transition in the European Union. EIB Global is now building on this experience and is extending its just transition activities in regions most affected by decarbonisation efforts and where there is an intention to shift to more sustainable economies. In addition, the just resilience approach aims to tackle unintended negative impacts of adaptation policies and actions through investments informed by social analysis.

And also empowers countries and people that bear unequal climate change burdens to withstand and better adapt to these changes, for example in least developed countries, small island developing states, and fragile states. Increasing climate resilience and ensuring just climate adaptation policies are urgently needed as rising temperatures are increasing geographical and social inequalities with devastating consequences.

Climate Bank Roadmap mid-term review

Just before COP28, the Board of Directors of the EIB approved the mid-term review of the EIB Group’s Climate Bank Roadmap. This stock-taking exercise provides an update on the EIB Group’s progress towards the objectives of its pioneering roadmap while taking into account regulatory and market developments. The Climate Bank Roadmap 2021-2015 was adopted in 2020 to operationalize the EIB Group’s ambition to transform itself into the EU climate bank and step up its support for the European Green Deal and international climate goals.

The roadmap committed the EIB Group to support €1 trillion in green investments by 2030 and align all its operations with the principles and goals of the Paris Agreement. In addition, the roadmap set a target that at least 50% of annual EIB financing would be dedicated to climate action and environmental sustainability by 2025 and beyond. The mid-term review confirms that the EIB Group is on track to meet these targets. EIB climate action and environmental sustainability financing reached 58% of total financing in 2022.

Since the roadmap was adopted, the EIB Group has responded to Russia’s invasion of Ukraine and the subsequent energy crisis with a reinforced commitment to the green energy transition. In July 2023, the EIB Group increased its REPowerEU support package, initially approved in October 2022, by 50% (to €45 billion from €30 billion). The aim is to support €150 billion in investment by 2027 to accelerate the green energy transition in Europe, strengthen energy security, and boost innovative technologies, including state-of-the-art manufacturing and critical raw materials needed for the net-zero economy.

EIB Climate Survey: People of major industrialized nations support compensating low-income countries affected by climate change

In the run-up to COP28, the sixth edition of the EIB Climate Survey has been launched. This year’s edition shows strong support from citizens for global climate action which takes into account the impact on the most vulnerable. But it also reflects heightened anxiety about the cost of living in many EU countries. Running since 2018, the Survey offers insights into the climate change-related views of people in major economies around the world, with more than 30,000 respondents in the European Union, the United Arab Emirates, the United States, China, India, Japan, the United Kingdom, Canada and South Korea — polling a representative panel of people aged 15 and above in each of the countries polled.