Sustainable Energy Initiative (SEI)

Municipal and Infrastructure Energy Efficiency

The EBRD now invests in municipal energy via its Green Economy Transition approach.

Learn more about our Green Economy Transition approach

Municipal infrastructure in the countries where the EBRD invests has suffered from decades of neglect and underinvestment and the EBRD is committed to improving it. The EBRD therefore supports investments in improving services which are under the ultimate responsibility of local governments, whether provided by public or private entities, or through public-private partnerships.

In much of the EBRD region a long period of under-investment in municipal infrastructure has resulted in aging and obsolete assets that urgently require upgrades and modernization. The EBRD helps municipalities to address these challenges by combining investments for service provision with technical assistance for capacity and institution building.

The EBRD has supported many municipal clients and private service suppliers in decentralizing their services, commercializing local service provision, and developing cost effective tariff structures.

By doing so, the EBRD has a tangible impact on municipal services provided to the people in its region. For instance, investments in urban transport have led to improved public transport services, better traffic management, and more efficient and safe network designs. Investments in solid waste management have resulted in improved efficiency and frequency of collection, adequate disposal, and the reduction and elimination of environmental hazards connected to waste disposal, such as the groundwater contamination.

Water and wastewater investments financed under the SEI, improved the quality of service and ultimately of life of the clients, and led to significant improvements in environmental compliance. The EBRD also supported upgrades of district heating systems and local power networks which came with significant efficiency gains, and reduced the climate impact of municipal service provision.