Annex 1: Climate project disclosure
The EBRD has been tracking climate finance1 on a project-by-project basis since 2006. Up to 2017, the EBRD disclosed this information on a sectoral or country level.
The table below shows climate finance data on a project level.
1At the EBRD, climate finance is defined as ABI that qualifies for GET under the climate change mitigation and adaptation categories.
|Operation name||Banking sector team||Economy||ABI (euro millions)||Climate finance (euro millions)|
|DLF – Georgia Logistics Terminal||Transport||Georgia||1.0||1.0|
|Railway Rehabilitation Project||Transport||Kosovo||8.6||8.6|
|RG Brands Loan Facility||Agribusiness||Kazakhstan||5.9||3.7|
|DFF – Arabian Cement||Manufacturing and Services||Egypt||21.8||11.1|
|Schwarz Sustainable Retail Romania||Agribusiness||Romania||30.0||23.4|
|DFF – SwoodS Sawmill||Manufacturing and Services||Belarus||10.0||10.0|
|Hystead Serbia||Property and Tourism||Serbia||30.7||4.7|
|Nibulon Grain Infrastructure||Agribusiness||Ukraine||34.9||34.9|
|UZ New Rolling Stock||Transport||Ukraine||131.0||95.6|
|CTPark Bucharest – Project 13k||Property and Tourism||Romania||43.8||24.5|
|Corridor Vc in FBH – Part 3||Transport||Bosnia and Herzegovina||120.0||13.9|
|DFF – Akkim Chemicals||Manufacturing and Services||Turkey||12.0||7.7|
|DFF – KCPM||Manufacturing and Services||Ukraine||15.0||10.0|
|DFF – Energoresurs-invest||Manufacturing and Services||Ukraine||3.4||1.4|
|SOPC Energy Efficiency & Upgrade Program||Natural Resources||Egypt||174.6||112.6|
|Actera III||Equity Funds||Turkey||109.2||109.2|
|DFF: REKS Recycling||Manufacturing and Services||Kosovo||4.6||4.6|
|DFF – Nova Poshta||Transport||Ukraine||9.5||4.3|
|Hystead FYR Macedonia||Property and Tourism||North Macedonia||14.8||2.7|
|Hystead Montenegro||Property and Tourism||Montenegro||3.3||3.3|
|DFF – Project Green Light||Natural Resources||Morocco||8.7||4.4|
|Aksa Acrylic Filament||Manufacturing and Services||Turkey||43.2||38.8|
|DFF – Zeus||Agribusiness||Belarus||10.0||2.0|
|DFF – Project Steel – Restructuring||Manufacturing and Services||Poland||20.0||5.1|
|Project Keystone||Property and Tourism||Regional||28.6||14.9|
|DFF – Multisac||Manufacturing and Services||Morocco||3.1||0.5|
|Akis REIT (f. Project White)||Property and Tourism||Turkey||20.3||3.0|
|VMG Mogilev||Manufacturing and Services||Belarus||50.0||7.0|
|OTE Eurobond 2||Information and Communication Technologies||Greece||40.0||40.0|
|Globalworth Real Estate Investment II||Property and Tourism||Romania||60.0||13.6|
|Serbia Voz: TPS Zemun Project – Loan II||Transport||Serbia||22.0||17.9|
|Schwarz Sustainable Retail Greece||Agribusiness||Greece||40.0||17.2|
|DFF – Project Megalab||Manufacturing and Services||Georgia||3.3||0.3|
|DFF – Negabarit||Transport||Ukraine||2.6||0.3|
|DFF Nitrogénmuvek||Manufacturing and Services||Hungary||25.0||25.0|
|DFF – Guala Pack Solvent Recovery||Manufacturing and Services||Ukraine||3.5||3.5|
|DFF – Auga Group||Agribusiness||Lithuania||8.9||8.9|
|ZAT GET||Manufacturing and Services||Poland||116.3||59.3|
|DFF – Project Recyclage||Manufacturing and Services||Tunisia||1.1||1.1|
|DFF – Project Irakli||Agribusiness||Georgia||2.7||0.9|
|DFF – Hosh Zaman Greenhouses||Agribusiness||Turkmenistan||2.6||1.0|
|RSF – TBC Bank – Rooms Hotel Bakuriani||Property and Tourism||Georgia||2.4||0.5|
|DFF – DIV Group||Manufacturing and Services||Croatia||14.6||1.5|
|BUS Electricity Distribution Project||Power and Energy||Lebanon||15.7||15.7|
|DFF – Egesil Kimya||Manufacturing and Services||Turkey||15.0||15.0|
|KyrSEFF II Kompanion loan||FI – Russia, Central Asia and Caucasus||Kyrgyz Republic||0.9||0.9|
|KyrSEFF II – First MicroCredit Company||FI – Russia, Central Asia and Caucasus||Kyrgyz Republic||0.4||0.4|
|BZ WBK Poland REFF||FI – EU||Poland||25.0||25.0|
|EgyptSEFF – QNB AlAhli||FI – SEMED||Egypt||17.5||17.5|
|MonSEFF:Khan Bank Sustainable Energy Loan||FI – Russia, Central Asia and Caucasus||Mongolia||2.2||2.2|
|KyrSEFF II – DKIB Loan||FI – Russia, Central Asia and Caucasus||Kyrgyz Republic||1.8||1.8|
|FIF – DCFTA – Procreditbank SME Facility||FI – WB, Belarus, Moldova and Ukraine||Moldova||4.0||2.4|
|FIF – DCFTA – Ukreximbank SME Facility||FI – WB, Belarus, Moldova and Ukraine||Ukraine||13.1||7.9|
|GEFF – Western Balkans – AFK||FI – WB, Belarus, Moldova and Ukraine||Kosovo||0.5||0.5|
|Project Ragnar||FI – EU||Poland||30.9||30.9|
|GEFF – Western Balkans – Sparkasse Bank||FI – WB, Belarus, Moldova and Ukraine||Bosnia and Herzegovina||2.0||2.0|
|Bank Zachodni WBK subordinated bond||FI – EU||Poland||34.9||21.6|
|GEFF – Western Balkans – Unicredit Bank Serbia||FI – WB, Belarus, Moldova and Ukraine||Serbia||5.1||5.1|
|GEFF – Western Balkans – KRK||FI – WB, Belarus, Moldova and Ukraine||Kosovo||1.0||1.0|
|GCF GEFF Regional – GEFF Armenia – Ameriabank||FI – Russia, Central Asia and Caucasus||Armenia||8.2||8.2|
|Fransabank bond||FI – SEMED||Lebanon||13.1||13.1|
|KyrSEFF II – Optima Bank II||FI – Russia, Central Asia and Caucasus||Kyrgyz Republic||3.1||3.1|
|Project Meadow||FI – Insurance and Financial Services||Regional||56.8||56.8|
|GEFF – Western Balkans – Ohridska Banka||FI – WB, Belarus, Moldova and Ukraine||North Macedonia||1.0||1.0|
|GEFF – Western Balkans – Partner||FI – WB, Belarus, Moldova and Ukraine||Bosnia and Herzegovina||2.5||2.5|
|GEFF – Western Balkans – TEB Sh.A.||FI – WB, Belarus, Moldova and Ukraine||Kosovo||3.0||3.0|
|Project Meadow II||FI – Insurance and Financial Services||Regional||2.8||3.1|
|GEFF – Western Balkans – Erste Bank Serbia||FI – WB, Belarus, Moldova and Ukraine||Serbia||5.1||5.1|
|FIF – DCFTA ProCredit Georgia SME Facility||FI – Russia, Central Asia and Caucasus||Georgia||10.2||6.1|
|GEFF – Western Balkans – Union Bank Albania||FI – WB, Belarus, Moldova and Ukraine||Albania||2.0||2.0|
|GEFF- Western Balkans – Fondi Besa||FI – WB, Belarus, Moldova and Ukraine||Albania||1.5||1.5|
|GEFF – Poland – Millennium Leasing||FI – Insurance and Financial Services||Poland||69.8||69.8|
|CEEP – ACBA Bank||FI – Insurance and Financial Services||Armenia||1.7||1.7|
|FIF – DCFTA – OTP Leasing SME Facility||FI – Insurance and Financial Services||Ukraine||10.0||6.0|
|TurSEFF III – Finans Leasing||FI – Insurance and Financial Services||Turkey||25.0||25.0|
|CEEP – Basis Bank||FI – Russia, Central Asia and Caucasus||Georgia||6.0||6.0|
|Bank Audi – GEFF pilot||FI – SEMED||Lebanon||78.6||78.6|
|FIF – Regional SME CSP – Ohridska Banka||FI – WB, Belarus, Moldova and Ukraine||North Macedonia||5.0||3.0|
|WeBSEFF II: Banca Intesa Belgrade||FI – WB, Belarus, Moldova and Ukraine||Serbia||15.0||15.0|
|Garanti Leasing – TurSEFF III||FI – Insurance and Financial Services||Turkey||50.0||50.0|
|FIF – DCFTA – BCRC SME Facility||FI – WB, Belarus, Moldova and Ukraine||Moldova||2.5||1.5|
|FIF – Regional SME CSP – BiH UniCredit Bank Banja Luka||FI – WB, Belarus, Moldova and Ukraine||Bosnia and Herzegovina||2.5||1.5|
|FIF – Regional SME CSP – BIH UniCredit Bank Mostar||FI – WB, Belarus, Moldova and Ukraine||Bosnia and Herzegovina||2.5||1.5|
|GEFF – BMCI MorSEFF||FI – SEMED||Morocco||20.1||20.1|
|FIF – DCFTA – Basis Bank SME Facility||FI – Russia, Central Asia and Caucasus||Georgia||8.5||5.1|
|FIF – Regional SME CSP – Komercijalna Banka Skopje||FI – WB, Belarus, Moldova and Ukraine||North Macedonia||2.5||1.5|
|FIF -WB SME CSP-Sparkasse Bank Macedonia||FI – WB, Belarus, Moldova and Ukraine||North Macedonia||4.0||2.4|
|FIF – Regional SME CSP – ProCredit Kosovo||FI – WB, Belarus, Moldova and Ukraine||Kosovo||5.0||3.0|
|Project Bison||FI – EU||Poland||32.2||32.2|
|FIF – Regional SME CSP – Banka Per Biznes||FI – WB, Belarus, Moldova and Ukraine||Kosovo||2.5||1.5|
|EL TO Zagreb Upgrade Project||Power and Energy||Croatia||43.5||43.5|
|KazPetrol APG Utilisation Loan||Natural Resources||Kazakhstan||36.7||11.0|
|Elektro-Bijeljina smartmetering expansion||Power and Energy||Bosnia and Herzegovina||7.5||7.5|
|OEDAS Financing||Power and Energy||Turkey||96.1||84.5|
|MREK Privatisation and Transformation||Power and Energy||Kazakhstan||28.0||19.6|
|NEPCO Restructuring loan||Power and Energy||Jordan||231.4||143.5|
|UzbekEnergo Muruntau Substation||Power and Energy||Uzbekistan||72.0||72.0|
|Lietuvos Energija Green Bond 2||Power and Energy||Lithuania||30.0||30.0|
|Qairokkum HPP Climate Resilience Upgrade||Power and Energy||Tajikistan||33.2||33.2|
|Mestia HPPs: Kasleti-2||Power and Energy||Georgia||3.1||3.1|
|DFF – Modus Biogas Portfolio||Power and Energy||Belarus||13.1||13.1|
|Desert Solar Power Project||Power and Energy||Mongolia||9.2||9.2|
|Akfen Solar Power Project||Power and Energy||Turkey||45.0||45.0|
|USELF: Ekotechnik Solar||Power and Energy||Ukraine||5.6||5.6|
|KAZREF – Zadarya Solar Power Plant||Power and Energy||Kazakhstan||6.9||6.9|
|KAZREF – BAIKONUR SOLAR PLANT||Power and Energy||Kazakhstan||22.3||22.3|
|DFF – Project Tepco||Power and Energy||Egypt||0.6||0.6|
|Terna Rachoula Wind Farms||Power and Energy||Greece||16.5||16.5|
|BaltCap Infrastructure Fund||Equity Funds||Regional||20.0||7.0|
|USELF – Kness Solar||Power and Energy||Ukraine||18.5||18.5|
|Enguri HPP – Climate Resilience Upgrade||Power and Energy||Georgia||28.0||28.0|
|DFF – Agrospetsservice||Agribusiness||Ukraine||13.0||13.0|
|Akfen Wind Power Project||Power and Energy||Turkey||43.6||43.6|
|Entek – Menzelet & Kilavuzlu HPPs||Power and Energy||Turkey||42.7||4.3|
|Risen Solar||Power and Energy||Kazakhstan||19.2||19.2|
|KAZREF – Nomad Solar Power Plant||Power and Energy||Kazakhstan||29.5||29.5|
|USELF – Kamianka Solar||Power and Energy||Ukraine||12.2||12.2|
|USELF – Mykolaiv Solar||Power and Energy||Ukraine||18.1||18.1|
|SES Saran||Power and Energy||Kazakhstan||43.3||43.3|
|RSF – TBC Bank – Svaneti HPPs||Power and Energy||Georgia||6.0||6.0|
|Khujand Public Transport Project||Municipal and Environmental Infrastructure (MEI)||Tajikistan||9.6||9.6|
|GrCF Ulaanbaatar Solid Waste Modernisation Project||MEI||Mongolia||8.5||8.5|
|Puhovichi Solid Waste Project||MEI||Belarus||5.0||5.0|
|GrCF – Tbilisi Solid Waste||MEI||Georgia||15.0||9.0|
|GrCF – Batumi Bus||MEI||Georgia||2.3||2.3|
|UPTF: Kharkiv Trolleybus||MEI||Ukraine||8.0||8.0|
|UPTF – Zhytomyr Trolleybus||MEI||Ukraine||9.0||9.0|
|Cairo Metro Line 1 Modernisation||MEI||Egypt||205.0||205.0|
|GrCF-Izmir Metro Project II||MEI||Turkey||80.0||80.0|
|KG Water Framework – Karakol Water Supply||MEI||Kyrgyz Republic||5.5||5.2|
|UPTF – Kryvyi Rih Trolleybus||MEI||Ukraine||8.0||8.0|
|MR3: Hatay Water Subproject||MEI||Turkey||27.0||13.5|
|GrCF: UKT Tirana Water Company||MEI||Albania||15.0||15.0|
|SLFW – Bacau Urban Energy Efficiency||MEI||Romania||6.0||6.0|
|Tashkent DH – Tashteplocentral Project||MEI||Uzbekistan||43.7||43.7|
|Tashkent DH – Tashteploenergo Project||MEI||Uzbekistan||87.3||87.3|
|Tashkent Water Improvement Project||MEI||Uzbekistan||26.2||16.8|
|Horezm Water Project||MEI||Uzbekistan||52.4||26.2|
|Namangan Water Project||MEI||Uzbekistan||52.4||31.4|
|GrCF- Varna Climate Resilience Infra Project||MEI||Bulgaria||10.2||8.4|
|Kitchener Drain Depollution – Solid Waste||MEI||Egypt||79.0||79.0|
|Kitchener Drain Depollution – Drain Rehabilitation||MEI||Egypt||69.0||10.4|
|GrCF-Energy Efficient Refurbishment of Zenica Hospital||MEI||Bosnia and Herzegovina||10.0||8.5|
|GrCF – Lviv Solid Waste||MEI||Ukraine||20.0||20.0|
|GrCF2: Minsk VK||MEI||Belarus||84.0||84.0|
|UPTF – Mariupol Trolleybus||MEI||Ukraine||13.0||13.0|
|GrCF: Sofia Electric Buses Acquisition P||MEI||Bulgaria||3.7||3.7|
|SWIFT Constanta sub-project||MEI||Romania||25.0||12.5|
|Pavlodar SL Modernisation||MEI||Kazakhstan||3.4||3.4|
|DFF – KF Baku Bus||MEI||Azerbaijan||5.6||5.0|
|Shymkent Water II||MEI||Kazakhstan||5.0||1.0|
|GrCF2 W2 – Craiova Urban Rehabilitation||MEI||Romania||15.0||15.0|
|MR3: GAM Solid Waste Crisis Response – LFG Expansion||MEI||Jordan||3.8||3.8|
|Regional TFP: Bank of Georgia (Guarantee & Pre-export)||FI – Russia, Central Asia and Caucasus||Georgia||12.7||0.5|
|Regional TFP: TBC Bank (guarantee & pre-export)||FI – Russia, Central Asia and Caucasus||Georgia||11.9||1.3|
|Regional TFP: Priorbank Guarantees and Pre-Export||FI – WB, Belarus, Moldova and Ukraine||Belarus||18.3||0.1|
|Regional TFP: Aval bank (Gtees & cash disb)||FI – WB, Belarus, Moldova and Ukraine||Ukraine||51.2||18.9|
|Regional TFP: JSCB OTP Bank, Ukraine||FI – WB, Belarus, Moldova and Ukraine||Ukraine||6.8||0.6|
|Regional TFP: Mobiasbanca (Guarantee & Pre-export)||FI – WB, Belarus, Moldova and Ukraine||Moldova||1.1||0.8|
|Regional TFP: Khan Bank||FI – Russia, Central Asia and Caucasus||Mongolia||22.6||0.1|
|Regional TFP: ZAO Minsk Transit Bankl||FI – WB, Belarus, Moldova and Ukraine||Belarus||4.8||0.3|
|Regional TFP: Converse Bank||FI – Russia, Central Asia and Caucasus||Armenia||2.2||0.5|
|Regional TFP: Armswissbank||FI – Russia, Central Asia and Caucasus||Armenia||5.7||0.4|
|Regional TFP: Eurobank EFG a.d. Belgrade||FI – WB, Belarus, Moldova and Ukraine||Serbia||94.5||1.8|
|Regional TFP: Belarusky Narodny Bank||FI – WB, Belarus, Moldova and Ukraine||Belarus||7.1||1.4|
|Regional TFP: Eurobank EFG||FI – EU||Bulgaria||4.8||2.4|
|Regional TFP: National Bank of Greece||FI – EU||Greece||71.5||17.0|
|Regional TFP: Belinvestbank||FI – WB, Belarus, Moldova and Ukraine||Belarus||11.2||1.0|
|Regional TFP: Ardshinbank||FI – Russia, Central Asia and Caucasus||Armenia||8.1||2.8|
|Regional TFP: Hellenic Bank Cyprus||FI – EU||Cyprus||11.2||1.3|
|Regional TFP: Bank of Cyprus||FI – EU||Cyprus||48.1||4.6|
|Regional TFP: Eurobank Ergasias S.A.||FI – EU||Greece||19.4||0.4|
|Regional TFP: Piraeus Bank S.A.||FI – EU||Greece||51.2||4.2|
|Regional TFP: Alpha Bank||FI – EU||Greece||105.8||8.7|
|Regional TFP: Piraeus Bank (Ukraine)||FI – WB, Belarus, Moldova and Ukraine||Ukraine||2.9||2.6|
Annex 2: Derogations
Some projects are unable to comply fully with all requirements of the Environmental and Social Policy. The EBRD Board approved derogations from the policy for 7 projects or project extensions signed in 2018. The specific derogations for these projects were agreed where affordability or operational constraints made full compliance unachievable but the overall environmental, social and economic benefits of the projects were sufficient to justify our investment. With the exception of the agreed derogations, these projects will meet our policy and performance requirements.
|SOPC Energy Efficiency & Upgrade Program||While the EBRD investment will improve its environmental footprint of the company, the refinery as a whole will not attain full alignment with the Performance Requirements (PRs),||Egypt||Natural Resources|
|and specifically European Union Best Available Techniques within the short to medium term. The ESAP structures the project investments to meet the Bank’s requirements, but also includes a road map to align the rest of the refinery with the PRs in the long term thereby addressing the legacy environmental and social issues identified during the due diligence.|
|BEH Bond||Due to the rules for capital market transactions, the Bank has not been in a position to undertake detailed or specific due diligence in accordance with the Bank’s Environmental and Social Policy before this bond issuance. However the Bank has previous experience working with this client and has carried out an appraisal of its environmental, health and safety management systems, which are in line with EBRD Performance Requirements||Bulgaria||Power and Energy|
|Kitchener Drain Depollution – Solid Waste||While the project will be designed in line with EU standards, full compliance with aspects of the Waste Framework Directive, such as the requirement for a high degree of waste segregation, reuse and recycling, may not be possible due to financial and local capacity limitations.||Egypt||Municipal and Environmental Infrastructure|
|Puhovichi Solid Waste Project||The project will rehabilitate waste collection, transportation, waste sorting, recycling and disposal services, and increase operational efficiency as well as improve environment and hygiene standards. However, policy dialogue on a comprehensive waste management approach at the regional level to pursue sector reforms and significant further investments will be needed to achieve full compliance with the EU Waste Framework Directive requirements in this area.||Belarus||Municipal and Environmental Infrastructure|
|GrCF Ulaanbaatar Solid Waste Modernisation Project||The project will rehabilitate waste collection, transportation, waste sorting, recycling and disposal services, and increase operational efficiency as well as improve environment and hygiene standards. However, policy dialogue on a comprehensive waste management approach at the regional level to pursue sector reforms and significant further investments will be needed to achieve full compliance with the EU Waste Framework Directive requirements in this area.||Mongolia||Municipal and Environmental Infrastructure|
|Tashkent Water Improvement Project||The project will result in significant environmental benefits but achieving full compliance with EU environmental standards for water and wastewater systems would require additional long-term investments estimated and is not possible at this time due to affordability constraints and limited financial resources.||Uzbekistan||Municipal and Environmental Infrastructure|
|Karakol Water Supply||The project will result in significant environmental benefits but achieving full compliance with EU environmental standards for water and wastewater systems would require additional long-term investments estimated and is not possible at this time due to affordability constraints and limited financial resources.||Kyrgyz Republic||Municipal and Environmental Infrastructure|
Annex 3: Category A disclosures
A total of 14 new Category A projects requiring an Environmental and Social Impact Assessment (ESIA) were in an active disclosure period during 2018.
Of the projects proceeding to the Board of Directors, all projects met the disclosure requirement of 60 days minimum for private sector projects or 120 days minimum for public sector projects before Board review.
Full ESIAs for all projects were available in local languages and were disclosed electronically. Links were provided to each project’s ESIA page on our web site.
|Country||Project name||State or private||Disclosure||Target board date:||Days publicly available (before approval)||Language|
|Turkey||Mersinli Wind Farm||Private||22-Mar-18||23-May-18||Cancelled||English,
|Belarus||GrCF: Minsk VK||Public||13-Apr-18||31-Oct-18||201||Russian,
|Uzbekistan||Talimarjan Power Project||Public||29-Jun-18||31-Oct-18||125||English,
|Bosnia and Herzegovina||Zivinice Regional Solid Waste Project||Public||5-Jul-18||13-Feb-19||93||English,
|Poland||Potengowo Wind Project||Private||10-Jul-18||27-Mar-19||291||Polish,
|Ukraine||East Renewable Energy Syvash Wind Project Ukraine||Private||16-Jul-18||28-Nov-18||136||English,
|Serbia||Serbia Route 7 Highway||Public||8-Aug-18||22-May-19||288||English,
|Kazakhstan||Kurty-Burybaital Road Project Extension II||Public||14-Aug-18||22-May-19||282||English,
|Poland||Olsztyn Waste Management PPP Project||Private||12-Oct-18||11-Dec-19||426||English,
|Serbia||Belgrade Solid Waste PPP||Private||12-Oct-18||27-Mar-19||167||English,
|Egypt||Lekela North BOO Project||Private||22-Oct-18||27-Feb-19||129||English,
|North Macedonia||GrCF: Skopje Wastewater Project||Public||11-Dec-18||19-Jun-19||191||English,
|Bosnia and Herzegovina||Corridor Vc – Doboj Bypass||Public||20-Dec-18||25-Apr-19||127||Bosnian,
Annex 4: Environmental Sustainability Bond Programme structure and alignment with Green Bond Principles
The Green Project Portfolio (GPP)comprises investments in two main areas:
Energy efficiency and renewable energy
The EBRD regions have substantial potential for cost-effective improvements in energy efficiency and for the expansion of renewable energy production. The EBRD also provides credit lines to local financial institutions that are seeking to develop sustainable energy financing as part of their business. The Bank provides these credit lines for energy efficiency and small-scale renewable energy. Local financial institutions on-lend the funds they have received from the EBRD to their clients, which include SMEs, corporate and residential borrowers, and renewable energy project developers.
Sustainable resource projects
The EBRD supports public- and private-sector operators in the delivery of essential urban municipal services nationally and locally. Projects include water efficiency, wastewater and solid waste management, resource efficiency, as well as sustainable transport solutions including urban public transport and traffic management systems. [Crosslink to case studies in main body of report]
GPP selection criteria and procedure
Regardless of whether they are subsequently allocated to the GPP, all projects are subject to due diligence before approval to assess their compliance with our Environmental and Social Policy and Performance Requirements (PRs). All projects in the GPP need to comply with all PRs to be eligible. The GPP is compiled using further objective and transparent criteria based on strict exclusion and inclusion principles (see below). These criteria are reviewed regularly to ensure they remain consistent with our own evolving thinking and understanding on sustainability, as well as with investor and market requirements for green investments.
A key criterion in the framework ensures that only projects in which 90 per cent or more of the proceeds are directed to environmental purposes are eligible. The framework allows us to refinance existing projects, as well as finance new commitments that meet the eligibility criteria.
Apart from a positive list of the environmental benefits of certain industry activities (such as renewable energy, energy efficiency, water and waste infrastructure) there are also various exclusion criteria. We exclude, for example:
From the GPP:
- the construction of new large hydropower installations (as defined by the International Commission on Large Dams, ICOLD)
- fossil fuel production/regeneration/fuel switching and projects with significant consumption of fossil fuels (coal, heating oil, oil shale)
- biofuel production (pending the adoption of internationally recognised sustainability criteria)
- projects requiring a derogation from the Environmental and Social Policy for not being able to meet the Bank’s Environmental and Social Performance Requirements within the term of the EBRD transaction
- projects funded via equity, or projects that are credit impaired.
From all EBRD financing:
- defence-related activities, tobacco, selected alcohol products, substances banned by international law or gambling facilities
- projects related to subsidies, sponsorship or donations
- activities listed on the Exclusion list in Annex 1 of EBRD’s Environmental and Social Policy such as:
- the production of or trade in any product or activity deemed illegal under host country laws or regulations, or international conventions and agreements, or subject to international phase out or bans (such as production of or trade in products containing PCBs or pharmaceuticals, pesticides/herbicides, and other hazardous substances subject to international phase-outs or bans)
- the shipment of oil or other hazardous substances in tankers, which do not comply with IMO requirements.
The process is a combination of automated and manual steps, with every project checked and signed off to ensure compliance with GPP eligibility and exclusion criteria. We review the new and reassess the existing GPP projects quarterly to ascertain whether they are consistent with the criteria established for the GPP.
Management of proceeds
The EBRD’s Legal, Environmental and Sustainability Department and Treasury teams have prepared the use-of-proceeds language for bond documentation, and these are reviewed and revised together with the eligibility criteria regularly. The proceeds from all of the EBRD’s environmental sustainability bonds (ESBs) are directed towards the Bank’s GPP. The EBRD also seeks to ensure that the bond proceeds can be directed in full to its GPP by limiting the total amount of ESBs outstanding to 70 per cent of the GPP.
The net proceeds of the EBRD’s ESBs are tracked on a euro equivalent basis and, in the unlikely event that the issued bond amount exceeds the value of the GPP, the excess funds will be invested separately in money market instruments specified in the terms of the bonds until they can be allocated to projects in the GPP.
Examples of projects as part of the GPP
- renewable energy projects, such as photovoltaic installations, and production of photovoltaic cells/modules, installation of wind turbines, construction of small hydropower plants and mini-hydro cascades and geothermal and biomass energy facilities
- rehabilitation of transmission/distribution facilities to reduce total GHG emissions and allow for increased integration of renewable electricity in the grid, for example, smart distribution networks
- modernisation of industrial installations to reduce total GHG emissions and other pollution
- new technologies that result in significant reductions in total GHG emissions
- greater efficiency in mass transportation, such as investment in fuel-efficiency (fleet replacement) or more energy efficient infrastructure
- methane capture on waste landfills and wastewater treatment plants
- rehabilitation of municipal water/waste water infrastructure to improve drinking water quality and wastewater treatment and reduce water consumption and waste water discharges
- improvements to solid waste management (minimisation, collection, recovery, treatment, recycling, storage and disposal)
- energy efficiency investments in existing buildings (insulation, lighting, heating/cooling systems)
- investments to improve efficiency of industrial water use
- sustainable and stress-resilient agriculture, including investments in water-efficient irrigation
- sustainable forest management, reforestation, watershed management, and the prevention of deforestation and soil erosion.
Reporting the use of proceeds, impacts and outcomes of the GPP
The EBRD reports quarterly on the use of proceeds of the GPP, which currently comprises over 300 projects, on an aggregate basis due to confidentiality restrictions. The GPP is reported by environmental category, industry and country of operations. Further information is provided on the total number of projects, their average remaining life, and the total amount disbursed, which is compared with the outstanding amount of the EBRD’s ESBs.
In terms of estimated impact reports, the EBRD reports publicly on an annual basis. Regardless of whether projects are subsequently allocated to the GPP, all of those that we finance are subject to due diligence before approval to assess their compliance with our Environmental and Social Policy and Performance Requirements and are rigorously monitored over the lifetime of the Bank’s investment. For further details on assurance and tracking see section on Measuring and monitoring performance.
To measure the output and impact of projects specifically associated with the GPP, in addition to the mechanisms already in place to monitor Bank investments, we carry out a sample ex post check of 5 to 10 per cent of such projects to gain aggregate and project-level data on the GHG emissions that our projects successfully avoid, as well as energy consumption. We do this to improve reporting accuracy and to provide the market with a transparent platform for clearer comparison among issuers of green bonds. For more information see section on GHG emissions – Ex post monitoring.
Annex 5: Microfinance Bond Programme structure and alignment with Social Bond Principles
Microfinance Bond Portfolio
Our Microfinance Bond issuance is linked to the disbursed amount of the Microfinance Portfolio (MFP). This is a replenishing portfolio with strict eligibility criteria (see below) that ensures that the proceeds of our Microfinance Bonds are directed towards projects with positive socio-economic impacts. The current usage of the MFP is 9.2 per cent.
Use of proceeds for EBRD’s microfinance bonds
The proceeds of our microfinance bonds are dedicated to support the smallest loans provided under the EBRD Small Business Initiative (SBI). This strategic initiative builds on our long experience in this field and provides a range of flexible instruments that are combined into integrated products to help SMEs. Apart from funding MSMEs, the proceeds to financial institutions are mostly earmarked for specific target groups for example, specific underserved groups, such as women entrepreneurs and those based outside major cities, or to promote specific priorities, such as trade, competitiveness or innovation.
The proceeds are disbursed via our network of more than 200 partnering local financial institutions, which helps us reach hundreds of thousands of enterprises every year. Technical assistance (often through donor funding) typically accompanies these programmes to help our local partner banks adapt the way they do business with small clients for the long term, creating a sustainable impact.
Apart from the earmarked proceeds, which are documented in the respective loan agreement, the partner financial institutions also report on various aspects of the sub-loans. This can include basic information such as the size of the loan, whether it is a new or repeat borrower to the lender as well as whether the borrower is located in the country’s capital or not. Depending on any specific target groups that the loan might focus on, other tailormade reporting will be in place with regards to, for example, the distribution of currencies, maturities and purpose of the sub-loans.
Evaluation and selection of the MFP
The MFP is based on MSME earmarked loans to financial institutions under the SBI. This portfolio is then reduced by a cap on the size of sub-loans of €1 million (the average sub-loan size tends to be below €5,000).
We review the MFP projects at least annually according to our established criteria to ascertain continued compliance. As the financial institutions will assume delegated responsibility for sub-project appraisal and monitoring, please note in particular EBRD Performance Requirement 9 that deals with Financial Intermediaries. The effectiveness of the financial intermediaries’ environmental and social risk management will be evaluated and monitored on a continuous basis throughout the life cycle of a project.
Management of proceeds
The net proceeds of the EBRD’s microfinance bonds are tracked on a euro equivalent basis and the information is made public in the “EBRD Microfinance Bonds” presentation (see link below) in relation to the annual update of the MFP. The EBRD also seeks to ensure that the bond proceeds can be directed in full to its MFP by limiting the total amount of microfinance bonds outstanding to 70 per cent of the MFP.
In the unlikely event that the issued bond amount exceeds the value of the MFP, the excess funds will be invested separately in money market instruments specified in the terms of the bonds until they can be allocated to projects in the MFP. In such a case, the frequency of tracking the proceeds and updating the MFP would be increased.
The EBRD reports at least annually on the MFP on an aggregate basis due to confidentiality restrictions. The presentation “EBRD Microfinance Bonds” contains information on average tenor, margin and number of financial partner institutions for the loans, as well as the average sub-loan size across all financial institutions. The breakdowns of the MFP (by sector and country) are approximate, as they are based on the full reporting provided by the financial institution for their MSME activities (however, the restriction to not include any sub-loans larger than €1 million might lead to a difference in the actual MFP portfolio in relation to the full MSME portfolio as reported by the partner financial institution).
For further information on the full SBI activities, and to put the MFP into the strategic context of what the EBRD is aiming to achieve, see the annual “Small Business Impact Report”.
Annex 6: Health Bond Programme structure and alignment with Social Bond Principles
Health Project Portfolio
Our Health Bond issuance is linked to the disbursed amount of the Health Project Portfolio (HPP). This is a replenishing portfolio with strict eligibility criteria (see below) that ensures that the proceeds of our Health Bonds are directed towards projects that seek to improve access to, and quality of, health services and pharmaceutical products in the economies where we invest. The current usage of the HPP is 97.8 per cent.
Use of proceeds for EBRD’s health bonds
The proceeds of our health bonds are dedicated to support investments in general hospitals, speciality hospitals, outpatient treatment centres, diagnostic imaging and laboratory facilities, long-term care as well as medical technology producers. Separately, the Bank is financing hospital infrastructure PPPs, which are facility management projects (no medical service provision).
The EBRD’s approach in this sector is to:
- finance facilities that complement the existing public health system, rather than duplicate existing infrastructure
- to serve as a catalyst for improving standards of care and attracting other sources of finance to the sector.
By providing investment financing to a private healthcare provider serving public and private patients alike, the Bank seeks to improve access to and quality of health services in the EBRD regions.
Evaluation and selection of the HPP
The HPP is based on all EBRD projects for which the entire or substantially the entire amount disbursed or invested is directed to any of the following areas:
- the construction, expansion, refurbishment, upgrading, equipping and/or operation of hospitals, healthcare centres, diagnostic centres and/or
- the manufacture of medical and diagnostic equipment; improving the quality, accessibility and affordability of medicines through the upgrading of pharmaceutical facilities and processes to increase production capacity and process efficiency;
- facilitating the development of new pharmaceutical products; support of wholesale, distribution and retail channels in respect of pharmaceutical products
- ensuring good manufacturing practice in pharmaceutical manufacturing.
We review the HPP at least annually according to our established criteria to ascertain continued compliance.
Management of proceeds
The net proceeds of the EBRD’s health bonds are tracked on a euro equivalent basis and the information is made public in the “EBRD Social Bonds” presentation (see link below) in relation to the annual update of the HPP. The EBRD also seeks to ensure that the bond proceeds can be directed in full to its HPP by limiting the total amount of microfinance bonds outstanding to 70 per cent of the HPP.
In the unlikely event that the issued bond amount exceeds the value of the HPP, the excess funds will be invested separately in money market instruments specified in the terms of the bonds until they can be allocated to projects in the HPP. In such a case, the frequency of tracking the proceeds and updating the HPP would be increased.
The EBRD reports at least annually on the HPP. The presentation “EBRD Social Bonds” contains project-level information, including estimated impacts.