New Rules for Equator Principles – Same Old, Same Old?
The Equator Principles Financial Institutions have recently adopted new Governance Rules to create a membership structure - Equator Principles Association - and formalize existing procedures and practices. The Rules introduce delisting provisions for members not meeting public reporting requirements.
Currently there are 67 adopters of the Equator Principles. They have committed not to provide project finance to customers who are unable to meet the social and environmental standards described in Equator Principles (largely based on the IFC Performance Standards). The Principles apply where the Equator Principles Financial Institutions provide project finance loans or project finance advisory services for projects having a total capital cost of US$10million or more.
New elements introduced in the
Except for the new delisting clauses related to lack of public reporting by Equator Principles Financial Institutions or Associate, none of the elements of the Governance Rules suggest any major changes to the Equator Principles. This is much to the disappointment of advocacy NGOs like