The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding their cooperation to support green and digital development across a wide range of regions where the EBRD operates. Through a new package of European Fund for Sustainable Development Plus (EFSD+) guarantees worth €150 million, the two institutions aim to accelerate investments that strengthen climate resilience, improve digital connectivity, and promote sustainable economic growth.
The additional funding is being provided by the European Union under its Global Gateway initiative and will expand two existing EBRD programmes that have been successfully implemented in recent years. The move reflects the growing need for investment in both digital infrastructure and climate-focused projects as countries work to improve competitiveness, modernise infrastructure, and build more resilient economies.
Of the total package, €100 million has been allocated to support investments in digital infrastructure and digital services. The funding will be available across a broad geographic area, including the Western Balkans, Türkiye, Central Asia, Mongolia, Iraq, the Southern and Eastern Mediterranean, Eastern Europe, and the South Caucasus. The programme is expected to help finance projects that expand digital connectivity, improve access to modern digital services, and strengthen technological infrastructure in both urban and underserved areas.
The remaining €50 million will focus on supporting climate resilience and green development projects in the Western Balkans. The funding will be directed towards investments with environmental and sustainability components across several sectors, including industry, buildings, municipal infrastructure, sustainable transport and logistics, and, for the first time, agribusiness.
The inclusion of agriculture reflects the growing importance of supporting sustainable food production and helping rural economies adapt to climate-related challenges.The new guarantees are expected to help meet increasing demand for financing in sectors that are essential to long-term economic development.
Investments in digital infrastructure can improve access to technology, strengthen innovation, and enhance productivity, while climate-resilient infrastructure and green industrial projects can help countries reduce emissions, improve resource efficiency, and adapt to changing environmental conditions.Mark Bowman, EBRD Vice President for Policy and Partnerships, described digitalisation and green finance as two of the Bank’s key priorities.
He noted that the expanded cooperation with the European Union will allow the EBRD to support more investments that directly benefit businesses, communities, and citizens across the regions where the Bank operates. According to Bowman, the initiative further strengthens the long-standing partnership between the EBRD and the EU, which remains one of the Bank’s most important donors and strategic partners.
The European Commission also highlighted the broader significance of the initiative. Dubravka Šuica, European Commissioner for the Mediterranean, stated that cooperation with international financial institutions such as the EBRD plays a crucial role in mobilising the investment needed to create lasting economic and social impact.
She noted that the enhanced guarantees and funding will support the implementation of projects across the Mediterranean region, particularly in areas such as infrastructure development and digital services.Marta Kos, European Commissioner for Enlargement, emphasised the importance of maintaining strong engagement with neighbouring countries and EU candidate nations.
She noted that investments in digital services and environmental projects can deliver visible benefits to citizens while reinforcing cooperation between the European Union and its neighbouring regions. According to Kos, initiatives of this kind demonstrate the EU’s commitment to supporting economic development, sustainability, and modernisation beyond its borders.
The latest funding builds on a partnership that began in 2020, when the EBRD and the EU first started working together under the EFSD+ guarantee framework. Since then, the programmes have supported a wide range of high-impact investments and helped mobilise additional private-sector financing for critical projects.
Previous investments backed by these guarantees have included support for essential energy suppliers in Ukraine, resource-efficient industrial production in North Africa, and initiatives aimed at expanding digital connectivity in rural and underserved communities across several countries. By reducing investment risks and encouraging greater participation from private investors, the guarantee programmes have enabled projects that might otherwise have struggled to secure financing.
The additional €150 million in guarantees is expected to further increase the reach and impact of these programmes, enabling more countries and businesses to access funding for projects that support sustainable development, technological advancement, and climate resilience.
As governments and industries continue to navigate economic, environmental, and technological challenges, initiatives such as these are becoming increasingly important for driving inclusive growth and supporting long-term development across emerging and developing markets.
Through this latest commitment, the EBRD and the European Union are reinforcing their shared objective of building greener, more connected, and more resilient economies, while creating opportunities for innovation, investment, and sustainable prosperity across multiple regions.
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