At the occasion of the COP28 Meeting in Dubai, the EU and EBRD stated their commitment to accelerate green investments in the Southern Mediterranean, Türkiye, the Eastern Partnership and the Western Balkans with the signing of statements of intent for two guarantee schemes to be funded by the European Fund for Sustainable Development Plus (EFSD +).
The € 60 million Municipal, Infrastructure & Industrial Resilience guarantee will support EBRD’s lending to corporates and public utilities in the EU’s Eastern and Southern Neighbourhood, as well as in Türkiye, for investments in green technologies, transport and logistics sectors, and to improve energy efficiency.
The €168 million HI-BAR guarantee will allow the EBRD to accelerate investments in climate mitigation measures and innovative green technologies, including investments into green hydrogen and critical raw materials.
The implementation of these guarantee schemes will contribute to cleantech development, which is central to achieving climate neutrality and the goals of the Paris Agreement. Enhanced cleantech cooperation and investment in strategic infrastructure projects will stimulate economic growth and socio-economic resilience, and at the same time foster the green transition.
The European Commission’s Director General for Neighbourhood and Enlargement Negotiations, Gert Jan Koopman, said: “The EBRD is one of our key partners in our efforts to increase investments in our Neighbourhood and Enlargement countries. The two guarantees that the EU and the EBRD intend to conclude will help reduce the perceived risk by the private sector to invest in green technologies in countries engaged in a challenging green transition. These agreements show our strong commitment to the goals of the UN Framework Convention on Climate Change discussed at the COP28 gathering this week.
EBRD First Vice President Jürgen Rigterink said: “I am delighted to announce this significant milestone, which will help us to achieve our ambitious goals in mobilising climate finance and supporting the United Nations’ Sustainable Development Goals. Together with the European Union, our work will not only boost vital green investments, but also help to build a more sustainable future for people across our EBRD regions.”
The overarching priorities of the EU in its cooperation with the Neighbourhood and the Enlargement countries are the support of the Green Deal and Global Gateway initiatives, together with the promotion of decent jobs and sustainable and inclusive growth. These priorities are implemented through Economic and Investment Plans agreed with the countries of the Western Balkans, Eastern Partnership and Southern Neighbourhood regions.
The European Fund for Sustainable Development Plus (EFSD+) is a key instrument to pursue these goals. Through the EFSD+, and for the period 2021-27, the EU channels 22.5 billion euro in the form of blending and guarantee instruments via partner International Financial Institutions (IFIs), to promote lending and investments in risky environments of the Neighbourhood and Enlargement countries. Climate change mitigation and adaptation, energy efficiency and sustainable infrastructure are priority sectors of the EFSD +.
Cleantech represents a diverse range of products, services and processes intended to provide superior performance at lower costs, while reducing or eliminating negative environmental and climate impacts. The global market for key mass manufactured net-zero technologies is set to triple by 2030, with a total of € 600 billion market worth per year. The Southern Mediterranean region is of strategic importance given its geographical proximity to the EU and its vast clean energy potential.
Source : Neighbourhood