Paving the Way for Green Finance: A Year of Progress with the EBRD InvestEU Programme

Climate change is one of the most pressing challenges of our time, and building a sustainable finance system is crucial for mitigating its impacts. The EBRD InvestEU Programme is designed to unlock private capital for green investments by providing guarantees that reduce risks. This initiative not only supports environmental goals but also promotes economic resilience and growth.

One Year of Progress in the Regional Green Portfolio Guarantees under the EBRD InvestEU Programme

We are excited to share the successful completion of the first year of our "Regional Green Portfolio Guarantees under the InvestEU Programme". Funded by the European Bank for Reconstruction and Development (EBRD), this programme is to cover around ten European Union (EU) member states, mostly in Eastern Europe.

Key Highlights from 2024

The year 2024 has been a pivotal one for the EBRD InvestEU Programme, marked by several significant milestones:

1. Official signing with partners:

The EBRD commenced partnerships with Zagreba?ka banka (ZABA) in Croatia and Eurobank Bulgaria AD (Postbank). Agreements with two more partner financial institutions (PFIs) are in progress.

2. Development of core documentation:

During the inception phase, the project team developed essential operational tools and guidelines for all PFIs. This includes the operations manual, eligibility assessment guideline, verification guideline, and the EBRD InvestEU tool for application, eligibility checks, verification, and reporting. As the key contact person for the PFIs in Bulgaria, our PFI Manager, Marko Markov, is in constant communication with the Eurobank’s team to coordinate meetings, collect inputs and documents, agree on scope of support needed, etc. He is involved in all activities concerning the Bulgarian PFIs as well as in activities related to the development of the InvestEU tools and templates.

3. Marketing strategy and outreach:

Our lead Marketing Expert, Mihaela Bourceanu, developed a comprehensive marketing strategy and guiding materials to raise awareness and drive sales for the PFIs. These efforts are crucial for promoting the guarantees and ensuring the successful uptake of green finance products.

4. Capacity building and training:

A training needs assessment was conducted for Eurobank Bulgaria, which informed the development of a tailored curriculum and materials. Capacity-building activities will start in March, equipping PFI staff with the skills needed to effectively promote and manage green finance products. All training materials were designed to meet the specific needs and expectations of each PFI's staff for successful programme implementation.

Impact on Sustainable Finance and Green Investments

The EBRD InvestEU Programme is designed to foster a greener future by supporting a wide range of borrowers, including residential buildings, agriculture, construction, transport, and other sectors. The loans covered by the guarantee facilitate investments in green equipment, contributing to energy savings and CO2 emission reductions.

Key Benefits of the Programme:

• Risk mitigation: By covering the first loss risk, the guarantees enable PFIs to support projects that might have otherwise been deemed too risky, encouraging the flow of private capital into sustainable investments.
• Favourable lending terms: The guarantees help offer more favourable lending terms to borrowers, such as lower interest rates, extended loan tenors, and reduced collateral requirements.
• Addressing the market gap: The initiative addresses a significant market gap, with an estimated EUR 1 trillion needed for sustainable projects to meet the EU’s decarbonisation targets.

Looking Ahead

With a solid foundation established, we are excited to embark on the next phase of the programme, which includes:

• Supporting newly signed PFIs like ZABA in Croatia and Postbank in Bulgaria in developing InvestEU-compliant lending products and templates.
• Launching capacity-building initiatives to ensure PFIs are well-equipped to manage and promote green finance products.
• Continuing our marketing efforts to raise awareness and drive the adoption of sustainable finance solutions.

We are proud to support the EBRD's strategic goals in the EU through the InvestEU Programme. By strengthening the resilience of the local banking sector and fostering the green economy, we are making significant strides towards a sustainable and low-carbon future.

For more information, please contact: [email protected] or [email protected]