Natural resources, including oil, mining and gas, is a vital sector for many transition countries and one in which the Bank makes a significant impact. We focus our efforts in the sector on improving standards, as well as enhancing energy efficiency and energy security.
Our work in Natural Resources is guided by the following priorities:
Setting standards and best practice. In a sector that has widespread impacts on society and the environment, we promote the adoption of best international standards in environmental, health and safety and social practices as well as in transparency and corporate governance.
Investing across the value chain. Investments in oil, mining and gas can have a significant impact on local economies and small businesses, and to support this we particularly focus on strengthening backward and forward linkages. This includes supporting the development of transport, energy, water infrastructure and waste management and other added-value facilities and services which are key to the development of projects.
Building deep and liquid markets. The EBRD seeks to promote the expansion of energy and natural resources markets, both domestic and cross border, the liberalisation of prices and more extensive private sector participation. A key theme is the importance of clear, objective and predictable regulation as the basis for attracting new investors. We support energy interconnections with the aim of building ever greater regional integration. In countries which are rich in natural resources, the EBRD also helps them to develop the resources in a sustainable manner. In doing so we help diversify local economies and promote the responsible management of those countries’ natural resources.
Cleaner production and supply. We support the cleaner production and distribution of natural resources through greater energy and resource efficiency, for example by reducing gas flaring or investing in cleaner transport fuels or fuel switching from oil and coal to gas.
In the case of coal-and oil fired generation, the low-carbon transition necessitates a fundamental shift away from coal and oil as a source of electricity and heat. Accordingly the Bank will not finance investment in oil and coal fired electricity generation.
Watch this video to learn how the EBRD’s work in the mining sector is making a real change in the areas of inclusion, environmental and social governance, and community initiatives.