UK government-owned finance institution CDC Group has unveiled a plan to achieve net-zero emissions across its operations by 2050.
The plan aligns the group with the Paris Agreement on climate change by focusing its investments on climate action projects.
The group says it will direct 30% of its 2021 investments towards climate finance. The plan will help the group in promoting the just transition by ensuring gender diversity, social inclusion and that the rights of workers are respected whilst promoting the creation of new jobs and skills.
CDC will no longer invest in any business ” either directly or through an intermediary fund ” that is deemed to be misaligned with the Paris Agreement.
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This includes coal-fired power plants, retrofitting and rehabilitation of existing coal power facilities, coal mining, processing and trading, upstream oil exploration and production, midstream oil (including refineries), heavy fuel oil only-fired power plants and mini-grids, standalone upstream gas exploration and production, as well as transport infrastructure for exclusive crude oil or coal transportation for power generation.
The launch of the strategy follows CDC Group investing $1 billion in climate finance over the past three years.
The aim is to help companies to reduce carbon emissions.
Nick O’Donohoe, the CEO of CDC, said: “As governments, multinational institutions and private investors plan the global economic comeback from COVID-19, there exists a once in a generation opportunity to build back better for an inclusive, sustainable and resilient recovery.
“Climate change remains the single largest challenge faced by the planet and is the defining issue for our generation and for those that will follow. That is why we have launched this ground-breaking climate change strategy that will shape every single investment decision we make moving forward.”
Amal-Lee Amin, director of climate change at CDC, said: “Countries in Africa and South Asia are tackling the climate emergency alongside other urgent needs, most notably the need for economic growth, increased energy access and improved living standards to meet the needs of their citizens and to meet the UN Sustainable Development Goals (SDGs).
“As a DFI we will continue to provide support for private sector investments that contribute towards the Sustainable Development Goals in a way that is consistent with a country’s pathway to net zero emissions by 2050. From food to energy and manufacturing to construction, transformational action is required. We will also invest in the opportunities and shape markets needed to support the transition is socially just and resilient to climate risks and impacts, as needed to deliver prosperity within a new green economy.”