E3G Assessment: Netherland’s Development Bank Makes Strides Towards Paris Agreement Goals

A recent assessment conducted by E3G, an independent climate change think tank with a global outlook recognized the steady progress of the Dutch Entrepreneurial Development Bank (FMO) towards full Paris Alignment. The assessment was completed using the E3G Public Bank Climate Tracker Matrix, an online tool employing 15 metrics to measure the extent of Paris Agreement alignment within Development Finance Institutions (DFIs).

Key areas where FMO stands out as a leader include effective mainstreaming of climate change into its core strategic documents, strong procedures for greenhouse gas (GHG) accounting and reduction, as well as its significant commitment to complete fossil fuel phase-out by 2026 with its formulated comprehensive 'Transition Criteria'.

Notwithstanding this commendable progress, E3G recommended that FMO:

• extend its fossil fuel phase-out commitment to cover indirect investments;

• implement a zero net deforestation target and a screening process for biodiversity-positive co-benefits across its operations;

• enhance transparency in climate finance;

• develop country-specific strategies to guide their engagement with clients.