Investments in upstream oil and gas projects will soon become a thing of the past for the European Bank for Reconstruction and Development (EBRD).
The EBRD has announced it will align all its activities with the Paris Agreement by the end of 2022.
Last year, the institution committed to increasing its green finance to more than 50% by 2025.
Projects that seek funding support will be screened to ensure that they are consistent with low carbon development and that physical climate risks are addressed.
EBRD President Odile Renaud-Basso said: “Holding the increase in the global average temperature to well below 2°C is a global imperative to safeguard our planet and protect ourselves from climate-related risks.”