EBRD announces backing for green bonds, busses and energy efficiency

Solar panels

As the EU looks to its partners for its Global gateway programme, the European Bank for Reconstruction and Development announces funding for sustainable bus schemes, green finance initiatives and energy efficiency.

Since the launch of the EU Global Gateway, the European Bank for Reconstruction and Development (EBRD) has announced funding for several projects at a national or local levels that will likely strengthen regional sustainability and connectivity.

While not directly related to the Global Gateway, the announcements likely fit with the direction the EU intends to set, having announced plans to work more closely with multilateral development banks to drive sustainable connectivity.

The EBRD has announced €22m of loan and grant funding for the Turkish city of Mersin to put in place 100 new compressed natural gas-powered buses to improve the sustainability of its mass transit. At the same time, it is providing €8m of funding for the Serbian city of Novi Sad to acquire ten electric busses and install charging infrastructure.

The EBRD has also continued its strong investment in green finance availability. It has announced €12m of investment in a debut green bond by Noval Property in Greece, while also investing €10m in a green bond issued by Czech-based Photon Energy.

The Noval Property bond in Greece has raised a total of €120m for upgrading the portfolio of the second largest real estate investment company in the country. The Photon Energy bond has raised €55m for investment in the fast-growing company’s development of greenfield solar photovoltaic power plant projects across Central and Eastern Europe.

Just as importantly, the EBRD has invested in two energy efficiency programmes this month. The first of these is a fund for small businesses to access green finance in Kazakhstan. This financing will provide small scale funding for micro and small businesses to invest in energy saving solutions that benefit the environment and the economy. It also sees Shinhan Bank Kazakstan become the latest bank to join the EBRD’s Green Economy Financing Facility.

The EBRD is also providing around €100m to the BNP Paribas Bank Polska to loan to consumers to invest in energy saving technologies for their homes. Poland still has many homes dependent on coal-fired boilers which the fund can help them replace with more energy efficient heat pumps along with thermal insulation, along with other energy efficiency measures.