Today, at COP28 in Dubai, the EU and the EBRD affirmed their commitment to accelerating green investments in the Southern Mediterranean, Turkey, the Eastern Partnership and the Western Balkans, signing declarations of intent for two guarantee schemes. financed by the European Sustainable Development Fund Plus (EFSD+).
The €60 million guarantee for the resilience of municipalities, infrastructure and industry will support EBRD lending to businesses and public services in the EU’s Eastern and Southern Neighborhood, as well as in Turkey, for investments in green technologies, the transport and logistics sectors, and to improve energy efficiency. .
The €168 million HI-BAR guarantee will enable the EBRD to accelerate investments in climate change mitigation measures and innovative green technologies, including investments in green hydrogen and critical raw materials.
The implementation of these guarantee systems will contribute to the development of clean technologies, which is essential for achieving climate neutrality and the objectives of the Paris Agreement. Strengthened clean technology cooperation and investments in strategic infrastructure projects will boost economic growth and socio-economic resilience, while promoting the green transition.
The Director General of the European Commission responsible for the neighborhood and enlargement negotiations, Gert Jan Koopmansaid: “The EBRD is one of our main partners in our efforts to increase investment in our neighboring and enlargement countries. The two guarantees that the EU and the EBRD intend to conclude will help reduce the risk perceived by the private sector if it invests in green technologies in countries engaged in a difficult green transition. These agreements show our strong commitment to the goals of the United Nations Framework Convention on Climate Change discussed at COP28 this week.
First Vice-President of the EBRD Jürgen Rigterink said: “I am delighted to announce this important milestone, which will help us achieve our ambitious goals in mobilizing 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 build a more sustainable future for the people of our EBRD regions.
Background
The EU’s overarching priorities in its cooperation with Neighborhood and Enlargement countries are support for the Green Deal and Global Gateway initiatives, as well as 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 Neighborhood.
The European Fund for Sustainable Development Plus (EFSD+) is a key instrument to pursue these objectives. Through the EFSD+ and for the period 2021-2027, the EU is channeling €22.5 billion in the form of blended finance and guarantee instruments via partner international financial institutions (IFIs), to promote loans and investments in risky environments in neighborhood and enlargement countries. Climate change mitigation and adaptation, energy efficiency and sustainable infrastructure are priority sectors of the EFSD+.
Clean technologies represent a diverse range of products, services and processes intended to deliver superior performance at lower cost, while reducing or eliminating negative environmental and climate impacts. The global market for mass-produced key net-zero emissions technologies is expected to triple by 2030, with a total value of €600 billion per year. The southern Mediterranean region is of strategic importance given its geographical proximity to the EU and its vast clean energy potential.