The European Bank for Reconstruction and Development (EBRD) has agreed on a new €50m programme of financial guarantees with the European Union (EU) to improve renewable energy development in the EU Neighbourhood regions.
As part of the initiative, EBRD and EU will increase the investment in Ukraine’s renewable energy sector and focus on the EU Southern Neighbourhood countries, including Jordan, Lebanon and Tunisia.
EBRD Policy and Partnerships vice-president Pierre Heilbronn said: “We are delighted to partner with the EU for such an urgent cause as climate action.
“Our lending combined with the EU’s financial instruments encourages more participation of the private sector in investments, which are very much needed to face the global challenges of the future, including a more sustainable development model.
“This first agreement is only the beginning of our cooperation with the EU through the External Investment Plan in the EU Neighbourhood regions.”
EBRD’s guarantee programme will be funded through the EU External Investment Plan (EIP), an EU initiative that was launched in 2017.
EIP was primarily designed to attract new investments from businesses and private investors into the EU and Africa neighbouring countries.
According to the new financial programme, EBRD will provide guarantees to local commercial banks, enabling them to offer loans and project financing.
EBRD expects the new programme to generate an investment of approximately €500m.
The programme is expected to deliver additional 340MW installed renewable energy capacity. This is equivalent to an extra 970GWh of clean electricity generated from renewable sources annually while offsetting 530 kilotonnes of CO₂.
European Commissioner for European Neighbourhood Policy and Enlargement Negotiations Olivér Várhelyi said: “The guarantee agreement will help finance many more renewable energy projects with private sector financing.
“It will cut greenhouse gas emissions, first in Ukraine and then in countries in the EU’s Southern Neighbourhood, with a particular focus on Jordan, Lebanon and Tunisia.”