Latest insights: A new way for development banks to meet climate goals at least cost

Energy use is both the major contributor to global greenhouse gas emissions and a vital component of both sustainable development and economic growth. While high-carbon energy may help address concerns such as energy security in the short-term, in the long run, its related climate and health impacts are likely to aggravate the challenges that countries face in meeting their citizens' basic material needs at reasonable cost.

The latest report by South Pole Group and the Climate Policy Initiative shows that by integrating social, environmental, and climate goals into strategy development and project assessments, development banks can meet climate goals in a cost-efficient manner.

Key findings of the report titled 'The Productivity of International Financial Institutions' Energy Interventions' include the following:

• Energy efficiency projects improve energy productivity across the board, but represented only 14% of International Financial Institutions' (IFIs') energy portfolios from 2012 to 2014.
• Renewable energy projects usually improve energy productivity when compared to fossil fuel energy. They represent almost 30% of IFIs' energy portfolios from 2012 to 2014.
• Non-energy investments account for 80% of the total IFI interventions, highlighting the huge potential gains from mainstreaming energy efficiency across IFIs' portfolios.
• Many existing IFI policies, targets and processes improve energy productivity but each IFI can learn from the best practices of its peers.
• A common framework among IFIs to assess energy investments' productivity could help to more effectively direct resources to both reduce emissions and grow economies.

Download the full report below to find out more.