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European Bank for Reconstruction and Development (EBRD)

Established to promote transition to market-oriented economies in the countries of central and eastern Europe and Central Asia, the EBRD's lending often fails to benefit the people in these countries and regularly prioritises carbon-intensive and environmentally damaging development.

The European Bank for Reconstruction and Development was established in 1991 in London with the aim of promoting transition to market-oriented economies in the countries of central and eastern Europe and Central Asia.

The EBRD has greatly increased its activities as a result of the financial crisis. It also decided to expand its operations to Egypt, following the upheavals in north Africa. But questions persist about the sustainability of the financial system which it is promoting in the transition countries.

Institutional background

Currently the EBRD has 63 members (61 countries, the European Community and the European Investment Bank), with a total of 29 countries of operations in central and eastern Europe, Central Asia an the Caucasus - and soon in north Africa.

It provides loans, equity investments and guarantees for private and public sector projects in the areas of finance, infrastructure, industry and commerce. The EBRD works in close cooperation with other international financial institutions such as the World Bank and the European Investment Bank.

EBRD financing - disputable benefits

The EBRD has financed a number of environmentally and/or socially harmful projects. Although it has increased its investments into energy efficiency in recent years, it continues to diminish the impacts of these by financing carbon-intensive development such as coal, oil and gas production, transportation and generation, motorways and airports.

We've collected examples from the last 20 years to illustrate just how the EBRD's activities are often not worth celebrating - at least not for the affected people and environment.

Browse the timeline below for details, images and videos (You can zoom in and out by using the scale on the left.):

Concerns have also been raised about its financing for projects which should have been able to access financing from other sources (e.g. ArcelorMittal Temirtau), or companies which have not shown themselves sufficiently committed to improving their environmental and social governance (e.g. Dundee Precious Metals (DPM) in case of the Chelopech cyanide gold project). Some EBRD-financed concession contracts have also involved undue rewards for the private sector (pdf).

For more information contact our EBRD campaign coordinator Fidanka Bacheva-McGrath

Search EBRD projects by

Sostanj lignite thermal power plant unit 6, Slovenia

Slovenia plans to build a new 600 MW unit for the Šoštanj lignite power plant (TEŠ6) which would replace the power plant’s existing units 1-4 and possibly 5. Its promoters argue with increased efficiency, but in fact, this one lignite power plant alone will swallow up almost the country's entire carbon budget by 2050.

EBRD
EIB
Energy & climate
Nuclear power plant safety upgrades, Ukraine

Ukraine plans to extend the lifetimes of its fifteen nuclear reactors, most of which will soon pass their expiration date. EURATOM and the EBRD are considering financing a Safety Upgrade Programme that is a crucial stepping stone for the reactors’ prolonged use.

EBRD
Energy & climate
Ombla hydropower plant, Croatia

An underground hydropower plant is planned to be built in a natural habitat of global significance. The project's assessments have been plagued by oddities and cannot be considered complete.

EBRD
Other harmful projects
Kumtor Gold Mine, Kyrgyzstan

The Kumtor open pit gold mine is located in a majestic surrounding in the Kyrgyzstan mountains. It receives continued support by the European Bank for Reconstruction and Development, despite several accidents in the past and ongoing environmental damages from the mining operations.

EBRD
World Bank Group
Social & economic impacts
Other harmful projects
Mining
The 'Second Backbone Corridor' - High voltage electricity transmission lines, Ukraine

In its drive for 'energy security', the EU is looking to its eastern neighbour for cheap energy. But using a series of high-voltage transmission lines to import dirty energy supplies like nuclear and coal power from Ukraine will not make the EU safer, and it will lock both into an unstable and environmentally unsound energy mix.

EBRD
EIB
Energy & climate
Kolubara lignite mine, Serbia

Linked to a slew of controversies, the Kolubara lignite mine in Serbia is in line for loans from European public banks. Corruption allegations, pollution at local level, irregularities in resettlement of local populations and not to forget a climate damaging approach to energy investments should be reason enough to find alternatives to lignite mining.

EBRD
Energy & climate
Social & economic impacts
Mining boom in Mongolia

With huge amounts of unexploited natural resources (gold, copper, coal and more) the Mongolian economy is estimated to grow massively in the years to come. But will it also benefit the people in Mongolia? Or will environmental damages and disruptions of traditional lifestyles prevail?

EBRD
Energy & climate
Social & economic impacts
Other harmful projects
ArcelorMittal Temirtau, Kazakhstan

In 2007, ArcelorMittal (AM) received a loan from the European Bank for Reconstruction and Development (EBRD) to support further improvements of health and safety practices in its mining complex ArcelorMittal Temirtau (AMT).

ArcelorMittal’s success in securing yet another loan by a public finance institution contrasts starkly with the shortcomings of the previous AMT improvement project that was supported by the EBRD and the International Finance Corporation (IFC).

Bankwatch, the Center for Introduction of New Environmentally Safe Technologies in Kazakhstan and the coalition Global Action on ArcelorMittal (GAAM) have called for greater transparency and participation in project planning and implementation and for more scrutiny by the EBRD to ensure the effectiveness of activities financed by its loans.

EBRD
World Bank Group
Social & economic impacts
Other harmful projects
Mining
ArcelorMittal Kryvyi Rih, Ukraine

ArcelorMittal's enormous steel mill in southern Ukraine received a loan from the European Bank for Reconstruction and Development (EBRD) in 2006 that helped the company increase productivity and expand its market position but didn't do much to address the pollution caused by the mill.

EBRD
Energy & climate
Social & economic impacts
Mining
Steel giant ArcelorMittal

ArcelorMittal is the largest steel company in the world, producing approximately 8 per cent of the world’s steel output. But the cost of its success has largely been paid by the people living and working near the company’s plants, because of the ArcelorMittal's frequent disregard for the environment and fair labour practices.

EBRD
EIB
Energy & climate
Social & economic impacts
Other harmful projects


 

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