EBRD and EU step up support for private sector renewable energy investments

•  EBRD and EU to provide loans and unfunded risk cover for private sector renewable investments
• First EBRD guarantee programme supported by the EU’s External Investment Plan
• Ukraine, Jordan, Egypt, Morocco, Lebanon and Tunisia to benefit from wind and solar energy investments

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are joining forces to boost private sector investments in renewable energy in Ukraine, Jordan, Egypt, Morocco, Lebanon and Tunisia.

A new EBRD programme will result in significant greenhouse gas emission cuts and help these countries move away from fossil fuels by promoting wind and solar power. The EU will support the Programme to Scale-up Renewable Energy Investments with a €50 million unfunded guarantee for the benefit of the co-financiers, with total investments expected to reach €500 million.

The programme will demonstrate the potential for renewable energy investments, helping countries in increasing energy generation from renewable sources and in implementing measures to reach Paris Agreement climate goals.

This is the first EBRD unfunded guarantee programme to receive EU funding through the European Fund for Sustainable Development (EFSD), which is part of the EU’s External Investment Plan (EIP). The EBRD has been allocated a total of €265 million for guarantees and €16 million in technical cooperation from the EFSD for five investment programmes.  

EBRD President Sir Suma Chakrabarti and the EU Commissioner for European Neighbourhood Policy and Enlargement Negotiations, Johannes Hahn, signed the agreement for the EFSD guarantee for the programme to scale-up renewable energy investments today.

Suma Chakrabarti said: “We are delighted to partner with the EU for such an urgent cause as climate action. Our lending combined with the EU’s financial instruments crucially encourages more participation of the private sector in investments which are very much needed to face the global challenges of the future, including a more sustainable development model. This first agreement is only the beginning of our cooperation via the EFSD in the EU neighbourhood regions”.

Johannes Hahn said: “ xxx”.

The EIP is designed to attract more investment, especially from businesses and private investors, in the EU Neighbourhood and Africa. It is expected to leverage €44 billion of investment through EU support of €4.5 billion.

The EBRD is a pioneer in financing projects promoting renewable energy and combatting climate change.  To date, the EBRD has signed €30 billion in green investments, financed over 1,600 green projects and reduced over 100 million tonnes of carbon emissions. The EBRD’s Green Economy Transition Approach is aligned with the Sustainable Development Goals and the Paris Agreement, and is delivered through the EBRD’s unique business model, and its sector and country strategies.