EBRD revises growth forecast for 2021 upward to 5.5%
The EBRD has increased its forecast for growth in 2021 across the regions where it operates to 5.5 per cent, according to its latest Regional Economic Prospects report published this week. For 2022, the EBRD expects further solid expansion with 3.8 per cent growth. Output in the EBRD regions has been helped by a return to mobility, which recovered quicker in EBRD regions than what has been seen globally. But major causes for concern such as inflationary pressures or supply chain disruptions threaten the recovery.
EBRD Chief Economist Beata Javorcik said: “This is a bittersweet recovery. The first half of 2021 brought a robust rebound. But we are now seeing growing cause for concern. While high commodity prices benefit exporters, they weigh heavily on the trade balances of importers. The supply of affordable energy as we enter the winter period is becoming a serious worry, especially since governments’ headroom is limited.”
The launch of the forecast was widely reported by international, regional and local media. In an interview with Le Monde, Professor Javorcik warned: “Inflation will severely penalise the poorest”.
EBRD at COP26
The EBRD released a new video with its ambitions for the COP26 Climate Conference and President Odile Renaud-Basso said: “"The stakes are extremely high. And the world needs to be united to deal with the challenges. Countries need to set for themselves ambitious targets and the EBRD stands ready to support them through financing and policy advice.”
EBRD launches plan to mobilise private capital for climate finance
The EBRD announced its intention to double the mobilisation of private sector climate financing by 2025. The way to achieve this target was set out in an Action Plan on Mobilising Private Capital for Climate Finance, unveiled at COP26.
With this plan the EBRD will support the transition to a low carbon economy in its countries of operations. It spans the full range of activities to stimulate investment from green and sustainability-linked bonds through innovative financing mechanisms for industrial decarbonisation to targeted loans to support for the circular economy.
EBRD and partners launch High Impact Partnership on Climate Action
The EBRD and partner governments launched a High-Impact Partnership on Climate Action (HIPCA). The objectives are to unleash investments and solutions that reduce or prevent greenhouse gas emissions, strengthen resilience and reduce vulnerability to climate change, and protect the environment. The partnership was developed in collaboration with Austria, Finland, the Netherlands, Switzerland, the TaiwanICDF (International Cooperation and Development Fund) and the United Kingdom.
World leaders in Global Methane Pledge
The Global Methane Pledge was signed by US President Joe Biden, EC President Ursula Von der Leyen and other world leaders. EBRD President Renaud-Basso endorsed the declaration on behalf of the Bank, saying: “We are supporting economies in increasing their environmental sustainability, including by supporting methane abatement across the agribusiness, waste and energy sectors. We are committed to working closely with the signatories of the Global Methane Pledge to help achieve the important target it sets.”
Multilateral development banks to step up protection of nature
In a joint statement the multilateral development banks (MDBs), including the EBRD, stated that “progress on global sustainable development, climate and biodiversity goals cannot be achieved without addressing the direct and indirect drivers of nature loss and transforming the way in which we value, use, conserve and share the benefits from nature”.
MDBs call for “expansion and acceleration of climate action”
As driving forces in supporting emerging markets and developing countries tackle the climate crisis, MDBs called for “a significant expansion and acceleration of climate action across countries and economic sectors” in a joint statement. The declaration was signed by the African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the EBRD, the European Investment Bank, the Inter-American Development Bank Group, the Islamic Development Bank, the New Development Bank and the World Bank Group.
Forbes writer Felicia Jackson included the views of EBRD Managing Director, Green Economy and Climate Action, Harry Boyd-Carpenter in her article in which she sought the answer to “Beyond The Rhetoric: As Negotiations Begin, What Do We Mean By Success At COP26?" Boyd-Carpenter says, “COP is about raising ambition, about using the momentum of the meeting to promote more action.”
EBRD President Renaud-Basso at EU-Central Asia Economic Forum
Following her participation at the COP26 Climate conference EBRD President Odile Renaud-Basso attended the EU-Central Asia Economic Forum in Bishkek, the capital of the Kyrgyz Republic. Demonstrating the Bank’s commitment to the region and its sustainable development, she said: “I would like to confirm that the EBRD’s future activity in Central Asia will be aligned with our own target of making half of the Bank’s annual investment green by 2025 and compliant with the goals of the Paris Agreement by early 2023. We have the capital and experience to do this, and our partners in Kazakhstan, the Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan and Uzbekistan can testify that the EBRD is already delivering towards these objectives.”
Remon Zakaria appointed new EBRD Head of Montenegro
Remon Zakaria has been appointed Head of Montenegro for the EBRD, succeeding Jaap Sprey, who has joined the European Commission in Brussels. A dual Italian and Egyptian national, Mr Zakaria joined the EBRD’s Energy Efficiency and Climate Change team in April 2012. He was initially based in Istanbul from where he supported the delivery of green investments, policy dialogue assignments and technical assistance.
Project signings and agreements
EBRD backs Ukrenergo’s Eurobond to resolve payment crisis in Ukraine’s renewables sector
The EBRD invested US$75 million a sustainability-linked bond issued by Ukraine’s national power company, Ukrenergo, in a bid to resolve the payments crisis gripping the country’s renewable energy sector. The proceeds will cover all payment arrears owed to renewable energy producers.
The investment will help to restore the credibility of the Ukrainian renewable energy sector and boost the confidence of private investors and financiers, paving the way for much-needed investment to support the country’s green transition.
The payment was widely covered by local and international media. It was top story in the Ukraine Financial News newsletter and also covered, among others, by Reuters, Bloomberg and Kyiv Post.
Gaziantep commits to climate action as part of EBRD Green Cities
The EBRD joined forces with the city of Gaziantep to help improve the urban environment and people’s lives. As part of this commitment, the city in south-central Turkey will join EBRD Green Cities, the Bank’s flagship urban sustainability programme, and develop a comprehensive investment plan. As a first step, the EBRD will explore the opportunity to invest in a solar project and help the city to integrate solar power into electricity grids.
EBRD, EU boost Ukrainian small business funding via Bank Lviv
The EBRD is extending a local-currency loan worth the equivalent of €10 million to JSC Joint Stock Bank Lviv to facilitate access to finance for micro, small and medium-sized enterprises in Ukraine. At least 50 per cent of the financing will be dedicated to supporting projects that promote environmental goals. The EBRD loan will also help Bank Lviv to diversify its funding structure with medium-term local-currency resources and support the growth of its MSME portfolio.
EBRD and donors
Empowering people with diabetes in Egypt
With the help of EBRD and its donors, Almed Zayed, an Egyptian doctor and entrepreneur, developed together with his partner Tarek Mandour the first app in Egypt to educate, empower and motivate people with diabetes to manage their condition themselves. Mazboot allows patients to track, record and chart their blood glucose levels. Its artificial intelligence-driven technology identifies blood sugar patterns linked with other important aspects such as diet, physical activity and medication. It also takes into account the specific habits of people in the region and provides real-time, clinically based feedback and coaching to patients.
EBRD in social media
We've been at COP26, leading climate action across our regions! We‘re helping our economies raise their ambitions for a net zero world.
Our President spoke at the 'Delivering Finance for Developing and Emerging Markets' session at COP this week.
The President also told Turkey's TRT World about the challenge of finding more bankable climate projects to feed fast-growing private-sector interest in our regions.
She also explained to Sky’s Climate Live the important role the private sector plays in climate action, just transition, gender and climate finance.
Our first COP26 event was devoted to Operationalising Article 6: State of play from the MDB perspective.
Another interesting COP26 event focussed on the financial sector and meeting the objectives of the Paris Agreement.
Watch the EBRD’s “High Impact Partnership on Climate Action” (HIPCA) event, which launched the Bank’s first multi-donor fund on climate change and environmental degradation.
We also held an event jointly with AIIB on mobilising the private sector for climate-friendly infrastructure.
Today we hosted our annual consultation with members of the Ministry of Foreign Affairs of South Korea at our London HQ.
Looking forward to further cooperation with this critical partner to keep changing lives across our regions.
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