EBRD adopts new country strategy for Estonia

By Axel  Reiserer

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The European Bank for Reconstruction and Development (EBRD) has adopted a new country strategy for Estonia for the period 2021-26 with two priorities:

Support Estonia’s green economy transition

The EBRD is well positioned to help accelerate the country’s green and just economic transition to meet its 2030 energy and climate targets. Based on its Green Economy Transition approach and building on its strong track record, the Bank will combine investment in renewables with policy engagement, for instance in developing competitive and transparent auction systems. The EBRD also offers its experience in financing energy efficiency modernisation of the residential housing stock, in order to support a green transition that leaves no one behind.

Foster Estonia’s knowledge economy

The EBRD stands ready to support companies, especially in the small and medium-sized enterprise (SME) segment, to boost their productivity, for instance with investments in digitalisation. The Bank is also continuing its work to deepen the local and regional capital market as an investor in innovative debt and equity and with policy engagement in order to provide companies with a wider variety of sources of finance.

Estonia is widely considered to be best in class in terms of economic transition away from a planned towards a market-based economy. Similar to its regional peers, the country has enjoyed strong income convergence, reaching 84 per cent of European Union (EU) GDP per capita in 2019, and strong economic ties with its Nordic and Baltic neighbours.

The economy has been significantly affected by the Covid-19 pandemic. In light of a strong policy response and considerable EU funding expected under the Recovery and Resilience Facility and the Multiannual Financial Framework, the EBRD country strategy will be reviewed in 2023 and adjusted to reflect the most recent developments.

The EBRD has been working in Estonia since the country regained its independence. To date, the Bank has invested €771 million through 97 projects in the country.

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