On Friday, March 24, 2023, InvestEU Investment Committee approved guarantees of a maximum of around 150 million euros, in the form of framework agreements, for the first activities of the EBRD that will follow. This effort is part of an InvestEU guarantee contract of up to €450 million between them European Commission and her ETA.

The European Bank for Reconstruction and Development (EBRD), with the support of the InvestEU programme, will mobilize over €1.1 billion in financing through direct investment or intermediary financial institutions to help the EU countries in which the EBRD operates to capitalize on the their full green potential. It will support investment projects to improve sustainability and minimize environmental impact.

The new funding will boost green and sustainable investment in local government, transport and energy to address environmental challenges.

It will also contribute to the EBRD’s successful Green Cities programme, which is active in more than 50 urban areas to accelerate their green transition. It will contribute to the recovery from the COVID-19 pandemic, plug infrastructure gaps and improve the competitiveness and socio-economic convergence of these EU countries.

In addition, financial institutions in these countries will be able to grant loans to finance investments in sustainable transport, energy efficiency, renewable energy and residential buildings. In this way it will be possible to save energy and reduce CO2 emissions in buildings and in the transport sector.

Finally, with the support of InvestEU, the EBRD will also support green investments in a wide range of industrial and infrastructure projects. These measures will focus on private companies facing the rising costs of newer technologies, higher perceived risks and a lack of available funding.

Projects expected to be funded under this include energy and resource efficiency in industry and commerce, circular economy and recycling initiatives, green buildings, sustainable food, renewable energy, storage and energy networks, water and waste, as well as low carbon and urban transport.

Mr Valdis Dombrovskis, Executive Vice President for an Economy at the Service of People, said: “I welcome these first EBRD Framework Agreements, backed by InvestEU guarantees, which will support EU countries in Central and Eastern Europe , as well as Greece, to release their full potential for green growth and environmental sustainability. The agreements will support green investment in local government, energy and transport, boost competitiveness and help increase socio-economic convergence. InvestEU plays a key role in harnessing investment across the EU and promoting a sustainable, inclusive and resilient economy. EBRD is our important and reliable partner in achieving these priorities.”

Economy Commissioner Paolo Gentiloni said: “InvestEU supports investments across the EU that will help us deliver on our shared priorities. And no priority is more urgent than building a greener and more sustainable Europe. The approval of these guarantees shows the benefits we can derive from having the EBRD as an implementing partner in the InvestEU programme. Together, we can continue to ensure that InvestEU contributes to the delivery of critical investment projects and the implementation of the green transition.”

EBRD President Odile Renaud-Basso added: “I am very pleased that our partnership with the European Commission will unlock more sustainable and green investment across the EU. EBRD will leverage its expertise in the private sector and on policy to contribute to the rapid transition to a green future in the EU countries in which it invests — particularly in the local government, industry and SME sectors.”

Record

The European Commission and the EBRD signed an InvestEU guarantee contract in December 2022, amounting to up to €450 million. This contract will release up to €2.1 billion of EBRD funding to invest in sustainable infrastructure, the green economy and digitalisation, as well as innovation and research in the EU.

In addition, under the InvestEU programme, the EBRD and the European Commission, in February 2023, signed an agreement of up to EUR 60 million for advisory support for infrastructure, digitization and innovative investment projects in EU countries where the EBRD operates , namely in Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia.

The InvestEU program will provide the EU with substantial long-term funding by leveraging significant private and public resources to support sustainable recovery. It will also help mobilize private investment for EU policy priorities such as the European Green Deal and the digital transition. The program consists of three components: the InvestEU fund, the InvestEU advisory hub and the InvestEU portal. The InvestEU fund will be implemented through financing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will support the implementing partners’ investment projects, increase risk-taking capacity and thereby mobilize at least €372 billion in additional investment.

Nikos Andritsos