EBRD Unveils New Strategy to Drive Green Transition in Slovakia

EBRD Unveils New Strategy to Drive Green Transition in Slovakia

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has unveiled a new country strategy for the Slovak Republic, outlining its focus on advancing the green transition and strengthening economic resilience in the country. The strategy includes efforts to reduce CO2 emissions, set sustainable energy targets, advance waste management, and support renewable energy sources. The EBRD will also deepen the country’s capital markets to diversify sources of finance. In previous years, the EBRD played a role in developing green financing through capital markets and invested €3 billion in the Slovak Republic. This new strategy will guide the EBRD’s activities in Slovakia from 2023 to 2028.

(PRESS RELEASE) LONDON, 26-Oct-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, has received approval from its Board of Directors for a new country strategy that will shape the Bank’s investments and policy engagement in the Slovak Republic for the 2023-2028 period.

The central focus of this strategy is to advance the green transition and bolster economic resilience within the country.

Efforts to promote the green economy transition will concentrate on reducing CO2 emissions and setting ambitious sustainable energy targets for 2030 and 2050. Additionally, there will be a strong emphasis on advancing waste management and supporting circular economy business models. The implementation of this strategy will undergo a review in 2026.

Simultaneously, the EBRD will support energy efficiency and security, particularly through the expansion of renewable energy sources, aligning with the green agenda. This approach aims to reduce the Slovak Republic’s dependence on fossil fuel imports, enhancing the nation’s economic resilience.

To further enhance economic resilience, the Bank will continue to deepen the country’s capital markets by acting as an investor and engaging in policy initiatives to diversify sources of finance.

In the preceding strategy period, the EBRD achieved significant milestones in the Slovak Republic, addressing similar challenges. Notably, the Bank played a key role in the development of green financing through capital markets. It invested €100 million in the initial Minimum Requirement for Own Funds and Eligible Liabilities (MREL)-eligible issuances by Slovak banks, with €80 million dedicated to green bonds.

Collaborating closely with the Ministry of Finance and the National Bank, the EBRD actively contributed to the formulation of new covered bond legislation, effective from January 1, 2018. This legislation brought about substantial enhancements recognized by issuers and investors alike. Rating agencies awarded the Slovak Republic’s first AAA rating to a covered bond program. The EBRD participated in numerous covered bond issuances, amounting to €190 million.

To improve small and medium-sized enterprises’ access to alternative financing, such as equity, the Bank invested in various regional equity funds.

Overall, since commencing operations in the Slovak Republic, the EBRD has injected €3 billion into the country’s development, reaching this milestone concurrently with the approval of the new strategy.

Media contact:

Svitlana Pyrkalo
@ebrdsvitlana

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD