Funds worth over 1.1 billion euros are to be mobilized for sustainable projects, supported with 150 million euros in the form of guarantees under InvestEU, and Romania is also to benefit from these funds, the European Commission announced.
Under the InvestEU programme, the European Bank for Reconstruction and Development (EBRD) and the European Commission collaborate to help various EU countries realize their full green potential. Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia will benefit from these funds.
The investment committee of InvestEU approved on Friday guarantees worth approximately 150 million euros in the form of framework agreements for the first operations supported by the EBRD, which are to be carried out. They are part of the agreement on guarantees related to InvestEU in the amount of up to 450 million euros, agreed between the European Commission and the EBRD.
The EBRD, supported through the InvestEU programme, will mobilize funds worth over 1.1 billion euros, through direct investments or financial intermediaries, to help the EU countries in which the EBRD operates to realize their full green potential. They will support investment projects aimed at improving sustainability and minimizing environmental degradation, according to Agerpres.
The new funding will stimulate green and sustainable investments in the municipal, transport and energy sectors to counter environmental problems.
It will also contribute to the success of the “Green Cities” program supported by the EBRD, which is active in more than 50 urban areas, to boost the acceleration of their green transition. The financing will also support the recovery from the COVID-19 pandemic, will target infrastructure deficiencies and improve the competitiveness and socio-economic convergence of these EU countries.
In addition, financial institutions in these countries will be able to provide loans to finance investments in areas such as sustainable transport, energy efficiency, renewable energy and residential buildings. They will contribute to energy savings and the reduction of CO2 emissions in buildings and in the transport sector.
With the support of InvestEU, the EBRD will also support green investments in a wide range of industrial and infrastructure projects. They will especially target private enterprises that face increasing costs of new technologies, perceived risks and lack of availability of financing.
Projects expected to be funded in this context include energy efficiency and resource efficiency in industry and commerce, circular economy and recycling initiatives, green buildings, sustainable food, renewable energy, energy storage and grids, water and waste water, as well as urban and low-carbon transport.
“I would like to express my satisfaction with these first framework agreements with the EBRD, supported by guarantees under InvestEU, which will support EU countries in Central and Eastern Europe, as well as Greece, to unlock their full potential for green growth and sustainability of the environment. They will support green investments in the municipal, energy and transport sectors, boost competitiveness and contribute to increasing socio-economic convergence. InvestEU plays a key role in mobilizing investment across the EU and promoting a sustainable, enabling economy inclusion and resilience. The EBRD is our important and reliable partner for achieving these priorities,” said Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People.
Also the president of the EBRD, Odile Renaud-Basso, said that the partnership with the European Commission will unlock more sustainable and green investments throughout the EU. “The EBRD will use its expertise in private sector engagement and policy to contribute to a rapid transition to a green future in the EU countries where we invest – particularly in the municipal, industrial and SME sectors of their economies,” stated the EBRD president.