The European Bank for Reconstruction and Development and the European Union have agreed a €150 million top-up in EU guarantees to expand EBRD-backed programmes for digital development across several regions and climate-resilience projects in the Western Balkans.
The funding comes through the European Fund for Sustainable Development Plus (EFSD+), which provides EU-backed guarantees — a form of financial backing designed to reduce risk for lenders and investors — under the EU’s Global Gateway initiative, the Commmission announced on Friday.
Of the €150 million, €100 million is earmarked to boost investments in digital infrastructure and services in the Western Balkans, Turkey, Central Asia, Mongolia, Iraq, the southern Mediterranean, eastern Europe and the south Caucasus.
A further €50 million will support climate resilience in the Western Balkans through projects with a green component in industry, buildings, municipal services and sustainable logistics, and for the first time will include agribusiness.
Mark Bowman, the EBRD Vice President for Policy and Partnerships, said the bank’s priorities include building “modern, reliable digital infrastructure” and providing “green finance.”
Guarantees programme has run since 2020
The EBRD has partnered with the EU on the two EFSD+ guarantee programmes since 2020, and the guarantees have been used to support investments including energy suppliers in Ukraine, resource-efficient production in North Africa and efforts to expand digital access to rural areas in several countries.
Dubravka Šuica, the European Commissioner for the Mediterranean, said the EU was securing increased guarantees and funding for projects in the Mediterranean region, particularly in infrastructure and digital services.
EFSD+ was established in June 2021 and is described by the EU as a key tool under Global Gateway, providing grants and guarantees for investment projects through international financial institutions.
