Investing For a Greener Future

European Association Development Financial Institutions (EDFI)

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Abstract: Two years have passed since the Paris Agreement was adopted in 2015 by 195 countries, marking a critical milestone to reach a low-carbon, climate-resilient growth and development. According to a report by the Climate Policy Initiative, private finance averaged capital flows of US$270 billion in 2015 and 2016. It states that a wide range of public and private finance actors are aiming to take advantage of the strong political signal delivered by the Paris Agreement. It has found that development finance institutions (DFIs) still provide the largest share of public finance and that they continue to make strong progress in scaling up climate finance lending in line with their internal institutional 2020 targets. However, the report also shows we are not doing enough yet. In the coming years, all DFIs will have to catalyse and mobilise more institutional investors to finance, as their contribution is less than 1 percent of the total flows.