Designing environmental projects

The EBRD actively pursues projects that are specifically designed to improve the environment.

Municipal and environmental infrastructure

Since its inception the EBRD has invested almost €2 billion on municipal infrastructure projects. Investment in this sector has helped to improve the quality of life for tens of thousands of people who have benefited from better public transport, greater access to clean drinking water and more reliable heating services. Raising standards also achieves environmental improvements. Investment in public transport, for example, achieves lower emission levels, better fuel efficiency, better air quality, less noise pollution and reduces usage of heavily polluting cars.

Renewable energy

One of the Bank's objectives is to improve the environmental performance of the power sector, and to address the climate change issue. As part of this objective, the EBRD supports renewable energy projects.

More about Renewable energy.

Energy efficiency and carbon finance

The EBRD is the only international financial institution with a specialised energy efficiency team, and an increasing number of projects focus exclusively on energy efficiency. An example of an energy efficiency project is the modernisation of Kazakhstan’s transmission grid company KEGOC, which reduced energy losses in the system as well as associated air pollutant emissions.

In response to the Kyoto Protocol, the EBRD has established one of Europe’s first carbon trading funds together with the Dutch government. The €32 million Carbon Credit Fund invests in climate-friendly projects that reduce GHGs emissions, such as improvements to district heating systems.

In 2005/6 the EBRD worked with the European Investment Bank (EIB) to establish the Multilateral Carbon Credit Fund (MCCF). The fund will facilitate the sale of carbon credits resulting from projects, in the EBRD's countries of operation, financed by the EBRD and/or the EIB.

In July 2006 the EBRD's Board of Directors approved a new 'Energy Operations Policy' which replaced the previous Natural Resources and Energy Operations policies. The new policy sets out the operational role of the Bank in the energy sector and establishes an overall framework for the Bank's activities. The Policy particularly mandates the Bank to increase its support for energy efficiency and renewable energy.

Additionally in May 2006 the Bank launched a 'Sustainable Energy Initiative' to address wasteful and polluting use of energy in its countries of operations. The initiative commits the Bank to invest up to €1.5 billion over the next three years on energy efficiency, renewables and clean energy projects.

More about the Energy Operations Policy (2006).  (0.5Mb)
More on the Sustainable Energy initiative.
More about Energy efficiency.
More about the Carbon Funds.