Cutting Carbon Emissions

morocco: Cutting carbon emissions

Natural resources

A US$15 million loan (€11 million equivalent) to Morocco’s Compagnie Minière de Seksaoua (CMS) will help the company cut carbon emissions by connecting its copper mine to the electricity grid and ending its reliance on costly and polluting diesel as a source of power generation.

CMS will also use the EBRD loan to increase production capacity at its Seksaoua mine approximately 150 km south of Marrakech.

With this investment, the Bank is helping to diversify the country’s mining industry, which is currently dominated by phosphate production, and supporting one of the few independent medium-sized private companies operating in the sector in Morocco. The transaction will also see CMS adopt the highest environmental, social and health and safety standards and commit to transparent business practice principles.

Improving Corporate Governance

Romania: Improving corporate governance

Natural resources

By acquiring a stake in Romgaz, Romania’s largest natural gas producer, the EBRD is helping the company improve its environmental management, corporate governance and internal control systems. The Bank took a 1.9 per cent stake in Romgaz after Romania’s Ministry of Economy reduced its holding from 85 to 70 per cent.

The initial public offering attracted many international investors, including the EBRD, and was the biggest listing to take place on the Bucharest Stock Exchange. Romgaz also listed global depositary receipts on the London Stock Exchange, marking the first dual listing for a Romanian company.

The floating of Romgaz is a test case for future listings envisaged by the Romanian government for 2014 as part of its plans for partial privatisation of state-owned companies. Through its support for this landmark transaction, the EBRD is also promoting the development of the local capital market.

Boosting renewable energy

Ukraine: Boosting renewable energy production

Power and energy

Supported by the Clean Technology Fund (CTF) and the Global Environment Facility (GEF), the Ukraine Sustainable Energy Lending Facility (USELF) has enabled the first non-recourse financed renewable energy projects in Ukraine. These are projects for which loans are only secured by the project collateral itself. The USELF has supported seven projects, covering a range of renewable technologies.

A good example is the EBRD’s support to CKSC Ecoprod – a large agricultural and dairy producer – with a €3.1 million USELF loan to construct a biogas plant that will use 44,500 tonnes of agricultural waste per year to produce 5.8 million m3 at standard temperature and pressure (STP) of biogas per year, resulting in 10 GWh per annum of electricity for sale to the grid, and heat for internal drying processes. This will lead to emission reductions of 9,800 tCO2e per annum and energy savings of €35,000 per annum, and reduce the amount of organic waste going to landfill, leading to further reductions in greenhouse gas emissions through avoided methane emissions from landfill. Additional support for successful implementation was received from the CTF, in the form of concessional grant co-financing, and from the GEF for policy dialogue and project implementation support for renewable energy feed-in-tariffs in Ukraine.

Extending rural electrification

Morocco: Extending rural electrification

Power and energy

An EBRD loan is supporting Morocco’s goals for extending rural electricity supply and paving the way for smart metering and decentralised renewable energy generation.

The Bank provided a €60 million sovereign loan to the Office National de l’Electricité et de l’Eau Potable (ONEE), Morocco’s national power utility, to support the last phase of its rural electrification programme, extending electricity supply to remote rural communities. The loan also finances a pilot smart metering project in order to help the Moroccan grid prepare for decentralised electricity generation, particularly rooftop solar voltaic.

The EBRD investment promotes systemic change in the Moroccan power sector in several ways. The loan requires ONEE to improve its environmental, corporate governance and accounting standards while a technical cooperation project will assess how the rural electrification programme can best take into account the needs of various social groups, including women. The programme will also cover health and safety, living conditions and education.

Promoting sustainable energy

Western Balkans: Promoting sustainable energy

Power and energy

Countries in the Western Balkans have enormous potential to cut energy costs, boost profits and reduce their carbon emissions by investing in renewable energy and energy efficiency. Since 2008 the EBRD has supported Bosnia and Herzegovina, FYR Macedonia and Serbia in this endeavour by delivering finance for sustainable energy projects and engaging in policy dialogue.

In 2013, the EBRD launched an extension to its successful Western Balkans Sustainable Energy Financing Facility (WeBSEFF), which provided €60 million in indirect loans to the private sector for smaller investments in energy efficiency and renewable energy. Operating via local banks, WeBSEFF funded 131 sub-projects that save more than 166,000 tonnes of CO2 emissions per year. The projects have helped transform the market for sustainable energy lending in these countries.

Its successor, WeBSEFF II, is a €75 million facility that continues to provide financing to private enterprise but also targets public sector bodies, such as municipalities and energy service companies (ESCOs). It uses policy dialogue to enhance the regulatory frameworks for sustainable energy and to overcome market barriers. This encourages investment in sustainable energy and the development of ESCO markets while technical assistance helps municipalities to launch pilot projects.

Through these financing facilities, and with generous support from donors, the EBRD is taking a comprehensive approach to addressing the sustainable energy financing needs of the region.

The facilities are supported by grant funding from the EBRD Western Balkans Multi-Donor Fund, the EU and the EBRD Shareholder Special Fund.

Modernising power distribution

Kazakhstan: Modernising power distribution

Power and energy

The EBRD is arranging a €106 million syndicated loan for the benefit of the Central Asian Electric Power Corporation (CAEPCO), one of the few private operators in the power sector of Kazakhstan. The loan will enable CAEPCO to invest in modernising its CHP plant and distribution network to reduce heat and electricity losses, thereby increasing efficiency and reducing pollution, with reductions of almost 0.5 million tonnes of annual greenhouse gas emissions expected. The EBRD has also provided technical assistance support from the EBRD Shareholder Special Fund, of €400,000 for the improvement of environmental standards, and €160,000 for energy efficiency audits and studies to develop energy savings programmes for CAEPCO’s clients.

In Numbers

EBRD annual Bank investment by sector, 2013

Energy ABI
  • Energy 21%
  • Infrastructure 20%
  • Industry, commerce and agribusiness 31%
  • Financial institutions 28%

Energy: annual Bank investment by subsector

Energy subsector
  • Power and energy 68%
  • Natural resources 32%

Key facts about our work in this sector
[table class=””][attr colspan=”1″] “We invested over €1.2 billion in 24 projects in the power sector across 12 different countries.

“In 2013, the EBRD signed its first energy project in Morocco, a €60 million loan to the Office National de l’Électricité et de l’Eau Potable to fund rural electrification.”

€790 million of the Bank’s power sector investments came under the Sustainable Energy Initiative in 2013.”

“The Bank made its first loan in the power distribution sector in Russia, providing Rb4.4 billion (€97 million equivalent) to support the modernisation of electricity networks in Russia’s Far East region.”

“The EBRD is the leading investor in energy efficiency and renewable energy in the countries where it invests.”

“The Bank’s task in the oil, gas and mining sectors is to help countries realise the benefits of natural resources in a responsible and transparent way.”


About this report

The EBRD’s Annual Report 2013 provides a comprehensive overview of our activities and achievements in the countries where we invest.

The report demonstrates that, amid economic turbulence and the deterioration of economies, the EBRD remains a strong, resilient and trusted partner.

It describes the transition impact of the Bank’s investments, projects and policy work, highlights its innovation in key sectors and geographical initiatives, and shows how the EBRD continues to promote sustainable growth and recovery.

Who we are

The EBRD is investing in changing people’s lives and environments across a region that stretches from central Europe to Central Asia, the Western Balkans and the southern and eastern Mediterranean.

Working together with the private sector, we invest in projects, engage in policy dialogue and provide technical advice that fosters innovation and builds sustainable and open-market economies.

What we do

We provide funds for well-structured, financially robust projects of all sizes (including many small businesses), both directly and through financial intermediaries such as local banks and investment funds. The Bank works mainly with private sector clients, but also finances municipal entities and publicly owned companies.

Our principal financing instruments are loans, equity investments and guarantees. We maintain close policy dialogue with governments, authorities, international financial institutions, and representatives of civil society, and provide targeted technical assistance using funds donated by member governments and institutions.


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