For the last decade, the government of Georgia has promoted hydropower as a way of tackling energy security and turning the country into a regional energy player. The EBRD has been one of the key catalysts of this hydro boom. Yet the presence of the EBRD and other international financial institutions has not been enough to ensure the development of comprehensive energy strategies, robust project assessments and meaningful public consultations. The potential for social and environmental problems is therefore prevalent. The Nenskra hydropower plant is yet another project that lacks the proper assessment and has failed to gain acceptance from the local communities.

Myronivsky Hliboproduct PJSC, also known as MHP, is a long-term client of the European Bank for Reconstruction and Development. Following loands in 2013 and 2010, the EBRD approved a USD 85 million loan on 28 October 2015 to support MHP's agricultural working capital needs. While the agricultural sector is widely viewed as one of the engines of the Ukrainian economy, MHP's operations are having a range of negative impacts on local communities.

As part of its new EUR 200 million loan to the Serbian electricity company EPS, the European Bank for Reconstruction and Development aims to assist with “identifying opportunities to improve environmental, safety, social, and labour governance and capacity, and on helping EPS to develop a more strategic approach to managing these issues”. As outlined in this briefing, so far the EBRD's fifteen-year partnership with EPS has not brought visible improvements in company practices and it is high time for the bank to prove that its engagement can add value.

The European Fund for Strategic Investments (EFSI) aims to leverage through the European Investment Bank (EIB) financing for a total of EUR 315 billion in new projects by 2018. The guarantee fund should target projects with a higher risk profile than normal EIB investments and should as well increase lending for investments which significantly contribute to achieving European common policy objectives ("European added-value"). This briefing outlines necessary improvements in the EFSI implementation to realise these aims.