Energy lending in south-eastern Europe

South-eastern Europe is riddled with poor planning and corruption in the energy sector and its governments are proving slow to react to the challenges and opportunities offered by the decarbonisation agenda.

Above: planned coal power plants in south-eastern Europe

This should be an opportunity for international lenders like the EBRD, the EIB and the World Bank to promote energy efficiency and sustainable renewables to shift the region's energy sectors towards lower carbon emissions.

So far, however, it is only happening in a few positive exceptions as our study and the projects that we monitor show.

Infographic

The damaging Projects of Energy Community Interest (click to see full size)

Note: This infographic is out of date. It contains projects that were not accepted as priority projects. For comparison, see the final list of approved PECIs.

The European Energy Community

The European Energy Community was established between the EU and a number of third countries in order to extend the EU internal energy market to south-eastern Europe and beyond. (Members include the EU, Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia, Moldova, Kosovo, plus Ukraine.)

The Community's priority projects, however, are set to include several environmentally damaging coal and hydropower projects that will be fast-tracked for financing over the next years.

Read more:
Dirty power plants in Europe's Neighbourhood set to become EU priority
Press release | October 22, 2013

Western Balkans and Ukraine: EC-backed Energy Community to prioritise coal plants that threaten EU long-term climate targets (pdf)
Briefing | October 22, 2013

Bankwatch in the media | June 30, 2014

High-level corruption in the energy sector is seriously affecting countries in seven countries in South Eastern Europe, according to the study Winners and Losers: Who Benefits from High Level Corruption in the South East Europe Energy Sector?.

Energy & climate

Tags: Balkans

Corruption Hinders Balkans Energy Sector Progress

Bankwatch in the media | June 30, 2014

Rampant corruption has raised costs, wasted opportunities for sustainable energy and distorted the market, says a new report by a group for environmental NGOs.

Energy & climate

Tags: Balkans

Planned Balkan coal plants may breach EU pollution limits

Bankwatch in the media | June 30, 2014

A new wave of coal plants in aspirant EU member states, authorised by the Energy Community, risk breaching EU pollution limits if they proceed according to their stated plans, an EU law firm says.

Energy & climate

Tags: Balkans

Expert proposals for Energy Community improvements are a promising step forward

Blog entry | June 18, 2014

South and eastern European member countries of the Energy Community may soon have to be much more ambitious about environmental standards in the energy sector. This is because the Energy Community, the body that aims to create a common energy market between the EU and some of its neighbours, may be about to introduce more of the EU environmental acquis into its Treaty.

Energy & climate