EU neighbourhood

The European Bank for Reconstruction and Development is expected to take a decision this month on whether or not to provide a EUR 300 million loan for a nuclear power plant Safety Upgrade Programme (SUP) in Ukraine. Bankwatch and other environment groups are questioning the logic of the proposed SUP as it will result in some of Ukraine’s old nuclear units continuing to operate for another 20 years.

At a press conference in January, Serbia’s energy minister Zorana Mihajlović spoke out strongly against the Kolubara mining complex, describing it as being “mired in crime and corruption” while also announcing that a thorough investigation is ongoing into corrupt practices by the Kolubara management. Bankwatch believes that this latest confirmed scandal at Kolubara should be giving the EBRD serious pause for reflection as it considers yet another loan to the Serbian electricity company EPS, heavily implicated in these latest revelations.

"Please be advised that, in this particular transaction, the EBRD and Monsanto were unable to find a satisfactory project structure for financing. Each institution will continue to explore other opportunities in order to provide farmers and distributors with adequate and time-appropriate financing, which we recognize to be one of the key challenges to increase agricultural productivity in the Bank’s region of operations."

Kosovo has just celebrated the fifth anniversary of independence. In these five years, Kosovo has achieved membership of certain international financial institutions (IFIs): having already joined the IMF and the World Bank, on December 17 last year Kosovo became the 66th member of the European Bank for Reconstruction and Development. Yet what can Kosovo’s citizens expect from EBRD membership?

The industry frenzy surrounding the development of shale gas in Europe is gathering pace, with the announcement in late January of a EUR 400 million deal between Shell and Ukraine to develop the country’s shale gas potential.

Kurt Bayer, until recently Austria’s executive director at the European Bank for Reconstruction and Development, has for several years maintained an interesting blog covering issues such as the Eurozone crisis and development finance more generally. Following his departure from the EBRD, might we start seeing a few more revealing insights from Mr Bayer about life – and some of its frustrations – at 1 Exchange Square, London?

This publication, prepared in close cooperation with national NGO coalitions and the support from external experts, aims to contribute to the elaboration of Partnership Agreements and Operational Programmes by proposing concrete measures to be financed, targets to be set, performance indicators to be applied and investment needs to be met - all with a focus on a policy that can foster sustainable development and catalyse the transformation to a low energy-consuming, renewable-based and resource efficient society.

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Quote from the WWF comments: "The EIB’s objective should support the EU’s 2050 decarbonisation goal. An EIB substantively revised energy lending policy should precludes investment in assets that lock‐in high carbon emissions and instead focuses on delivering a European zero‐emission energy system by 2050."