Aitmamat Nazarov, an expert in beverage production for over 15 years, led the establishment of new production facilities for Kyrgyz national drinks producer Artezian.
With support from the EBRD’s FINTECC (Finance and Technology Transfer Centre for Climate Change) programme, which is funded by the Global Environment Facility (GEF), Mr Nazarov’s company fitted the factory with expensive energy-efficient equipment. Steam boilers, CO2-capturing mechanisms and an advanced system of energy management were among the new measures.
FINTECC, which promotes the introduction of cutting-edge climate-resilience technology, is just one example of our global leadership in tackling climate change as we engage the private sector in the sustainable use of energy and resources.
The EBRD’s unique status as a catalyst for sustainable energy investment – in a region that is three times more energy-intensive than the EU average – is recognised by the international donor community. That is why over the past 10 years donors have provided just over €1.2 billion to fund technical assistance, grants, concessional co-financing and risk-sharing facilities for the EBRD’s energy efficiency and climate change projects.
Green Economy Transition
Donor partnerships will remain crucial in supporting the new EBRD’s new Green Economy Transition (GET) approach, approved in 2015 for rollout in 2016, which will see €18 billion invested in climate finance over the next five years.
The GET will make a substantial contribution to achieving the targets of the Paris Agreement, set at the COP21 climate talks last December.
Together, donor funding and EBRD investments have reduced CO2 emissions by an estimated 7.3 million tonnes in 2015 alone. This is comparable to the emissions of four million average cars circulating in the EU during the same period.
Over the last decade a third of donor climate resources have been contributed by bilateral donors. Among these were Austria, Finland, France, Germany, Japan, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China, the United Kingdom and the United States. Another third of climate resources came from the European Union, the EBRD’s largest single donor.
More recently, large global intermediary funds have played a significant role in scaling up the EBRD’s climate funding. Partnerships with the Climate Investment Funds (CIFs), the GEF and the Special Climate Change Fund mobilised almost €400million in donor climate finance, boosting total resources for green projects by one-third. A further €520 million is in the pipeline.
These alliances enable global coordination of efforts to tackle climate change. In 2015 the EBRD gained accreditation to use Green Climate Fund financing, which aims to mobilise unprecedented levels of funding for worldwide investment in low-emission and climate-resilient development. Global intermediary funds for climate change allow the EBRD to offer combined investments, co-financing grants, technical assistance and policy dialogue.
Policy reform and resource-efficient technology
The Ukraine Sustainable Energy Lending Facility (USELF), for example, is a credit programme worth €140 million, available for small and medium-sized renewable energy projects. It covers hydropower, wind, biomass, biogas and solar energy ventures. The Facility is supported by the CIFs’ Clean Technology Fund, while funding from the GEF, Sweden and Japan supports technical assistance to improve national regulations on renewable energy and stimulating the market.
In order to strengthen our ability to promote the sustainable use of energy, materials and water resources, in 2015 we established the Sustainable Resource Initiative (SRI) Policy Dialogue Framework with funding from the Czech Republic and the Slovak Republic. The Framework will help align advice on policy and sector reform with operations linked to the SRI.
The EBRD is also making great strides in promoting innovative clean technology in industries and infrastructure. Investments in environmentally friendly technologies help adopt a more sustainable development model; the EBRD and its donors are therefore making these technologies more affordable for governments and the private sector.
An EBRD loan and a grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P) have allowed the 1.1 million people of Armenia’s capital, Yerevan, to benefit from new energy-efficient LED lighting. The project will provide a more cost-efficient service and reduce energy consumption.
Through the EBRD’s Sustainable Energy Financing Facilities, partner financing institutions across the Bank’s region have become more familiar with lending for energy efficiency investments, such as the purchase of energy-saving equipment by firms. Donors provide co-financing and TC to train bankers in using these financial products, and for consultations with their clients about energy-related investments.
In 2015, credit lines totalling €3.3 billion were active in 24 countries. New lines of this type were launched in Croatia, Morocco and Tajikistan with support from the EU, the Southern and Eastern Mediterranean Multi-Donor Account, the UK and the CIFs.
Economies in transition need to adopt the best green practices in their industries, infrastructure development, policies and societies. Donor partnerships will remain crucial in boosting our capacity to advance this climate finance agenda.
Back in the Kyrgyz Republic, in just a few years, Mr Nazarov’s company has become a leader in the domestic market for soft drinks and beer. The savings derived from his investment in energy-efficient equipment have made the business more competitive while also helping to protect the environment.
Now that is something worth raising a glass to.