The Equator Principles (EP) provide a voluntary framework for assessing environmental and social issues in project financing. Based on International Finance Corporation (IFC) and World Bank safeguards, they are applied by banks and financial institutions when deciding whether to provide finance to projects costing $50m (£28m) or more.
By the beginning of January 2006, the EP had been adopted by almost 40 banks (Equator banks), representing about 80% of project finance funds worldwide. In practice, the EP’s influence is even greater as Equator banks also apply the principles when co-financing with other banks or when taking part in syndication of other banks’ projects.
