We leverage EDF’s sectoral and scientific expertise and collaborate with financial institutions to identify real world tools and solutions. We work with policymakers and standard-setters to advocate for policies and frameworks that support the greening of the financial sector.
To achieve its carbon neutrality targets, the European Union will need to increase the annual level of investment toward these targets from €330 billion in 2022 to €530 billion in 2030. Much of this increase will need to come from private finance.
Our goal is to help redirect financial flows towards activities and projects that support the decarbonisation of the real economy, with a particular focus on shipping, energy transition, agriculture, and hydrogen.
We leverage EDF’s sectoral and scientific expertise and collaborate with financial institutions to identify real world tools and solutions. We work with policymakers and standard-setters to advocate for policies and frameworks that support the greening of the financial sector.
See more of our sustainable finance work on our Climate Insights Hub.
At the start of this political term, the European Commission (EC) announced several measures aimed at reducing «administrative burden and compliance costs». A first ‘Omnibus’ package was introduced to simplify sustainability reporting obligations. While simplification is needed, it must not come at the cost of dismantling core elements that are instrumental in advancing the EU’s economic resilience and sustainability leadership. EDF has reached out to companies and financial institutions to understand what parts of the Corporate Sustainability Reporting Directive (CSRD) are working for them and which are posing challenges.
Our report highlights: (1) CSRD brings long-term benefits across the value chain for companies and the EU competitiveness, but the short-term implementation challenges are currently overshadowing the long-term benefits; (2) there are ways to make the life of companies easier while maintaining the core principles.
Large banks have set targets to decarbonise their oil and gas portfolios. So far, however, many have yet to demonstrate clear reductions in their financed emissions. At the same time, climate reporting from banks is still inconsistent, and climate accounting standards for banks and other lenders are still evolving.
Research shows that the oil and gas sector significantly under-reports its methane emissions (a highly potent greenhouse gas), obscuring the amount of emissions banks are financing. With the advent of satellite technology, such as MethaneSAT, banks are well positioned to demand stronger oil and gas methane management.
Missing Methane: The decarbonization risks and opportunities of financed methane emissions
The shipping sector is the backbone of global trade, but also a hard-to-abate sector that is responsible for close to 3% of GHG emissions globally. Financial institutions need to consider how to address shipping-related emissions in their portfolios while supporting the shipping sector’s need for significant capital to operate its transition to net-zero
Green Shipping and Sustainable Finance: Stronger Together
Maritime Makeover: The Role for Investors in Decarbonizing Global Shipping
Agricultural finance institutions face growing risks from climate change impacts — and untapped opportunities to help farmers around the world mitigate and adapt to climate change.
Hydrogen can play an important role to support our economy’s decarbonisation objectives. Significant investments are required to scale up the deployment of renewable hydrogen value chains. Public and private financing can come together to accelerate financial flows towards the renewable hydrogen projects that are the most beneficial for the climate. However, investment must be science-backed targeting the appropriate production methods, management practices and applications for low-emissions hydrogen.
Visit our Climate Insights Hub for additional resources for the financial sector.
