EBRD, EC Sign agreement to Unlock Investment in Green Economy

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by KnowESG
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The European Bank for Reconstruction and Development (EBRD) and the European Commission have signed a €450 million InvestEU guarantee agreement. The deal will allow the EBRD to lend up to €2.1 billion to the EU for investments in sustainable infrastructure, green economy, and digitalisation, as well as innovation and research.

This guarantee will be used by the EBRD to mobilise investments in a variety of sectors, including transport, mobility, energy, infrastructure, digital connectivity, the circular economy, and low-carbon technology.

It would also encourage investments in the bioeconomy, food, tourism, research, digitisation, essential raw material value chain solutions, life science, smart cities, sustainable blue economy, affordable social housing, and ICT. These investments will help the EU reach its larger strategic goals, which include making sure that green and digital transitions take place.

The projects will benefit Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic, and Slovenia.

The EBRD is now an InvestEU partner as a result of this agreement. InvestEU offers partners an EU budgetary guarantee to strengthen their risk-taking capacity, thereby contributing to the mobilisation of public and private investment in line with the EU's policy priorities.

The EBRD’s President, Odile Renaud Basso said: ”The EBRD is a very strong partner of the EU, and this agreement will allow us to push forward our common agenda for stronger EU economies and catalyse private investments in crucial areas such as green, connectivity, and innovation. "We are overjoyed with the start of our InvestEU collaboration."

Executive-Vice President for an Economy that Works for People, Valdis Dombrovskis, said: “This agreement comes at just the right time to better equip the EU to tackle the immediate economic and social consequences of Russia’s war against Ukraine. The EBRD has been our reliable partner for decades. Now, with the EBRD becoming an implementing partner under our flagship investment programme, InvestEU, we will bring our cooperation to a new level, also generating investments across a range of sectors for the longer term, in line with EU policy priorities.”

Commissioner for the Economy, Paolo Gentiloni, said: “InvestEU is supporting investment across the EU that will help us deliver on our common priorities, notably for the green and digital transitions. The EBRD has a long history of channelling investment to regions where it is most needed. With today's deal, the EBRD has become an InvestEU implementing partner, which makes me very happy. Together, we can supply the necessary investment to make crucial projects in key sectors realise their full potential to support economic development and create high-quality jobs.”

For more sustainable finance news

Source: EBRD


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