Project Description
A framework of uncapped unfunded portfolio guarantees of up to EUR 470 million to be provided by the EBRD, as an implementing partner under the European Union’s InvestEU programme, to eligible partner financial intermediaries (PFIs) in the 12 EU countries of operations (EU12 CoOs) to cover newly-generated portfolios of loans financing eligible green projects related to residential buildings or sustainable transport (and the building sector more generally for the dedicated Member State Compartment for Romania). The Bank’s guarantees will be partially covered by first loss risk cover provided by the European Commission (EC) under InvestEU.
Project Objectives
The overall objective of the Framework is to contribute towards improved sustainability and minimised climate and environmental footprint of the EU economies where EBRD operates, address the vital issue of carbon intensity of the economies of the EU12 CoOs and the energy crisis triggered by the Russian war on Ukraine. This will be done through enhanced availability of dedicated finance and tailored technical assistance to facilitate and upscale investments in (i) energy efficiency and renewable energy in the residential sector and in buildings across sectors and (ii) sustainable mobility.
Transition Impact
ETI score: 60
The expected transition impact of the Project will derive from its contribution to the Green and Resilient transition qualities.
1) Green: by addressing high energy consumption in buildings and the transport sector in the EU12 CoOs and contributing to increased sustainable energy investments leading to energy savings and reduction of carbon emissions. The Green Economy Transition (GET) contribution will be enhanced by PFIs allocating at least 125% of EBRD guarantee amounts to GET-eligible projects.
2) Resilient: by supporting PFIs in enhancing their capital resilience at the time of challenging macroeconomic environment and evolving regulatory requirements, by optimising the use of their capital through achieving risk weighted assets’ relief, thus freeing up lending capacity.
Client Information
Financial institutions, including commercial banks and leasing companies, operating in the EBRD EU countries of operations (Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia, Slovak Republic).
EBRD Finance Summary
EUR 470,000,000.00
Unfunded uncapped portfolio guarantees to eligible financial intermediaries.
Total Project Cost
Total Project Cost: EUR 587,000,000
Financial intermediaries financing for eligible green projects.
Additionality
The Framework features strong additionality stemming from (i) the introduction of an innovative financial instrument and risk mitigation to PFIs through a portfolio risk sharing instrument dedicated to financing green investments contributing to specific climate policy objectives; (ii) standard-setting, through the design and application of demanding minimum performance standards of technologies in the Framework’s eligibility criteria, as well as climateirelated monitoring and reporting systems; and (iii) the dedicated TC, which will assist in developing the eligibility assessment tools, as well as tools to support monitoring and reporting, and help PFIs and the end-borrowers to successfully deploy the InvestEU programme and facilitate scale-up of targeted investments, and will raise awareness of high-performing sustainable energy solutions.
Environmental and Social Summary
This Framework is not categorised, however sub-operations will be categorised as FI (ESP 2019) and subject to environmental and social due diligence. New clients will have to complete the ESDD questionnaire and for existing clients a review of previous annual E&S reports will be undertaken and any implementation gaps will be addressed. All clients supported under this Framework will comply with PRs 2, 4 and 9 and implement the Environmental and Social Risk Procedures appropriate to their activities as well as apply the extended E&S Exclusion List and the Referral List in ESP (2019). Specific requirements associated with the methodologies and objectives of the InvestEU Programme will also be assessed and the PFIs will adopt these. The ESDD on each sub-project will also include an assessment of Paris Alignment and GET attribution.
Technical Cooperation and Grant Financing
Concessional Finance:
Under this Framework EBRD will use first loss risk cover (FLRC) by the EU in the form of InvestEU guarantee, amounting to EUR 59 million for the EU Compartment and EUR 52.4 million for the MS Compartment in Romania.
Donor Funded TC:
The operation will be supported by technical cooperation (TC) to be structured and managed by the EBRD and funded under the InvestEU Advisory Hub.
PSD last updated
27 Apr 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: [email protected]
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: [email protected]
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to [email protected]. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email [email protected] to get guidance and more information on IPAM and how to submit a request.
