The EBRD’s Green Economy Transition approach will increase the volume of our sustainable financing and broaden its scope.
The EBRD launched the Green Economy Transition (GET) approach in 2015 to put investments that bring environmental benefits at the heart of our mandate.
Preserving and improving the environment are central features of a modern, well-functioning market economy and therefore key goals of the transition process that the EBRD was set up to promote.
Building on a decade of successful green investments, the GET approach seeks to increase the volume of green financing from an average of 24 per cent of EBRD annual business investment in the 10 years up to 2016 to 40 per cent by 2020.
EBRD sustainable investments mitigate and/or build resilience to the effects of climate change and other forms of environmental degradation. Expanding its initial focus on energy efficiency and renewable energy projects, the EBRD has already moved into the areas of water and materials efficiency and climate adaptation.
The GET approach further expands on this experience.
It broadens the environmental dimension. The GET approach supports a wider range of projects that promote the sustainable use of resources and protection of natural assets - for instance, investments whose primary purpose is the prevention of pollution or remedying of damage to ecosystems.
The GET approach emphasises innovation. There is considerable potential to increase the take-up of hi-tech solutions and innovative processes with environmental benefits in the EBRD region. The GET brings suppliers of new technologies and equipment into the markets, for example through the use of technology transfer mechanisms, such as the EBRD’s Finance and Technology Transfer Centre for Climate Change
- The approach makes selective use of public delivery channels to maximise impact. Recognising the large scope for investments with environmental benefits in the public sector, for instance in public buildings, the GET will use a broad range of financing channels and capacity-building tools to support innovative public ventures, while maintaining the EBRD’s overall private sector focus.
The GET builds on a tried and tested business model of combining investments with technical assistance and policy dialogue. Technical assistance can include market analysis and resource audits as well as training and awareness-raising.
As part of its policy dialogue activities, the EBRD works with governments to support the development of strong institutional and regulatory frameworks, a prerequisite for sustainable investments.